Premium Preview: AAPL Peels Layers of GRZ to Reach Core of PRZ

AAPL is inside a Day chart GRZ (Golden Ratio Zone aka the area between 38.2% and 61.8% of a Fibonacci rotation).  This is typically a decisive region and what's important to note is the top of the blue GRZ is the bottom of another GRZ, they merge to form a Double GRZ.  Where price can break and hold outside a GRZ offers an initial directional bias.

A Double GRZ, like a Double PRZ (Potential Reversal Zone aka the area that forms a harmonic pattern completion) strengthens a support or resistance, in this case resistance, so it tells a story if it holds as resistance as well as a story if it fails to hold as resistance.

AAPL Day Chart

AAPL Day Chart

Like I said, a GRZ is a decisive area, so although the bias is to the upside, there's waning oomph as price approaches this resistance area of 121.15.  A rejection of 121.15 suggests a pullback to test 118.7 for a bias decision, the ability to hold below there increases the probability of testing the Pullback GRZ at 113.11, below there would shift the bias from up to neutral with a downside pull.

A hold above 121.15 brings to mind two key components to be aware of, the first being that price is entering into the beginning stages of the red colored Bearish Crab PRZ and once inside a PRZ, the ideal scenario is to test all levels of the PRZ so that would be 129.09 but there's emphasis at 126.55 which is considered not only an upside target but also an obstacle to contend with before upside continuation.  The second component is to be cautious of a breach of 121.15 followed by a snap back into the GRZ, remember it's a matter of where can price break AND hold outside a GRZ or PRZ.

Harmonic patterns offer high probability entries, targets and defined risk once they're understood how to trade them.

Trading involves substantial risk and is not suitable for all investors. Past performance is not indicative of future results.