AAPL Technical Analysis: Retracement or Reversal Ahead?

Price Action Overview: On the 1-hour chart, AAPL has pulled back from the recent highs near $229, encountering resistance and currently trading at around $223.50. There’s been a clear double-top formation near the $229 level, followed by a bearish divergence on the MACD, signaling potential weakness.

Key Levels:
Resistance:
Primary Resistance: $228.68 (previous high level, tested twice)
Secondary Resistance: $226 (near recent rejection zone)

Support:
Primary Support: $221.22 (key horizontal support; previous consolidation area)
Secondary Support: $219.71 (critical level; a break below could indicate further downside)

Indicators:
Moving Averages (MA):
The price is currently below the 50-period MA, indicating bearish sentiment. If AAPL fails to reclaim this moving average, it could serve as dynamic resistance.

MACD:
The MACD has crossed below the signal line, showing increasing bearish momentum. However, the histogram is narrowing, suggesting a potential slowdown in selling pressure.

Volume:
Volume shows increased activity during the sell-off, which aligns with the bearish movement. The next move should be confirmed by volume continuation or divergence.

Trade Suggestion:
Bullish Scenario:
If AAPL can reclaim $226 and hold above this level, look for a retest of $228.68. A breakout above $229 could signal a new bullish leg up, with targets at $230-$232.

Bearish Scenario:
Failure to hold the $221.22 support could lead to a retest of $219.71. If this level breaks, expect a move towards $216, where the next strong support lies.

💬 Be cautious of a potential fake breakout if volume doesn’t confirm the move above $226.
Use tight stops around these key levels to protect capital, as volatility may increase with broader market movements.

🔍 Short Disclaimer:
This analysis is for educational purposes only and should not be taken as financial advice. Always conduct your own research before making trading decisions.