This article will focus on calculating reversal areas using Fibonacci tools. I will use a variety of Fibonacci charting tools to calculate potential support and reversal areas in case of a continued market pullback. I look at long-term charts for Apple (AAPL), Facebook (FB) and Tesla (TSLA) in this article.
Hopefully by now you have reduced your long exposure to stocks. I have suggested taking some profits off the table since the last week of September. If you have done so like me, then this article will have some nice price targets to put on your "stock wish list".
For those that haven't taken any profits off the table, the price targets I calculate for Apple and Facebook are a little scary.
This first chart for Apple (AAPL) is a 10 year monthly candlestick chart. There are a couple of long-term trendlines along with a Fibonacci Retracement Tool placed on the chart.
Considering that AAPL's share price has almost performed a 38.2% retracement already, I would look for a minimum of a 61.8% retracement on this pullback. That would put AAPL's share price back around the $144 price range.
If I am right about the NASDAQ possibly pushing to the 5,100 level, I think the support for AAPL might be found a little lower than the 61.8% retracement.
The bottom green trendline is the longest trendline of the 3 trendlines on the chart. AAPL's share price would be looking at the $125 price level on a pullback to the longest-term trendline. I think the $125 price target…...
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I calculate reversal areas for Apple (AAPL) and Facebook (FB). And rather than a reversal area, I calculate an upside breakout price level for Tesla (TSLA).
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what makes you look at a 5 year chart vs. a ten year chart when deciding to buy/sell
for example looking at the slo sto for GWW for 5 year it looks oversold and turning up where the 10 year looks overbought and turning down
The time frame of 5 or 10 years doesn’t matter. It’s the difference between the readings on a weekly candlestick chart compared to the readings on a monthly candlestick chart.
I’ll answer that question with the charts of PYX that you requested. I will use the MACD Histogram as the example of how to relate weekly to monthly chart readings.