 Welcome to the channel. This is reliable Rudy and today we're going to pick up where we left off from the last video and Continue with our Apple chart analysis now today. We're going to be focused on the Fibonacci tool and a little bit into gap fills and how I think that it corresponds into supply and demand for a particular company so as stated Yesterday, I thought that this was a very bullish look going into earnings now these earnings It says that they had a small beaten EPS and a small beaten revenue. Okay That does just because the price goes up after earnings does not mean That the earnings were good. I have not looked at these Apple earnings. I intend to make a video on it to show you Exactly what I'm looking for in earnings, but just because price goes up does not mean that the earnings were good But as I stated this was a bullish look now I should say I'm not a financial advisor Everything in this video contains merely my opinion and it's for entertainment purposes only Now With this type of look going in the earnings The reason why the earnings may not be good is because in my experience It's very easy when you set a closing price right on top of resistance It's very easy for bulls The bulls of the of Apple stock to take control of the price and gap it up over top of resistance Now I'm sure there's some good stuff in that earnings report do not get me wrong But I would not be entirely focused on that. We'll go more over this in later videos But now we're going to focus on Fibonacci tools and gap fills so Why I'm talking about this is Apple gaps up on these earnings now one day. I'm expecting this price to get filled In some way shape or form that price is going to get filled in some day Now the gap that I'm focused on for this video We're not going to go too much in the gap fills is this gap up and I'm going to zoom in on it you can see on July 30th of 2020 Apple price gaps up from about $96 and this gap has never been filled Now a lot of people ask me it Do you think that gaps gonna get filled one day? I think this gap's gonna get filled and that is why we're going to talk about Fibonacci retracement in this video is We're going to use a fib tool and understand how we think the price is going to get down there Now without going too much in the depth With it, I'm going to briefly explain an Elliott wave structures because this is what we're going to be matching up our Fibonacci retracement tool with so You can see this top diagram right here shows a one two three four five followed with an ABC Now inside this one wave you have a five wave structure and inside this five wave structure you have a multiple of Different structures. You have a a five wave structure with an ABC a five wave structure with an ABC a five wave structure with an ABC basically three five wave structures and two ABC structures inside of this so How am I going to match this up with my Fibonacci tool? So I'm very focused on this double top May zoom in for it. I'm focused on this double top right here This is not a very bullish look This is as bearish as it gets and what makes what's the cherry on top is I'm going to put a horizontal line right there and I'm going to put a horizontal line Right at the all-time high price now. You can see this double top forms in as A high lower high that is the cherry on top. This is not this is not a bullish look by any means Any means and there is a hard sell-off off of this. I've already looked at I know it's 28% but I'm going to show you guys Apple's price dropped 28% over over this time period now. That is no slouch of a fall for Apple now How am I going to use my Fibonacci tool? And we're just going to get rid of all the lines because I'm not I'm not focused on any support resistance or any of that stuff Right now. I'm focused on how is the price. We will keep our gap fill at 96 bucks roughly Right around there. We'll lower that because it was right around that 96 flat Okay, we'll just leave it right there. So how am I going to use this Fibonacci retraction tool? I know you guys are waiting I'm just going to simply go from top of the move bottom of the move now This in a sense is a Lot of different structures inside of this I should have done that first you can see From what I see right here. I see a 1 2 3 4 5 followed by an ABC a 1 2 3 4 5 followed by an ABC a 1 2 3 4 5 followed by an ABC now We actually end up pushing higher than this now a lot of people could have been expecting just a simple ABC and then Sell off now. There is some congestion in here Now I'm going to go to a four-hour chart and we're going to look at this congestion now I can see after we get a 1 2 3 you see a short term ABC and we get bought up So there was some indecision here. There were sellers thinking that okay. The price is set after an ABC retracement We're going to be ready for a five let a five wave structure to the downside. So there was indecision right here So going off of that indecision you actually see a clear five wave structure one two Three four five So off of this indecision we it just stays off of this short term trend line I'll put this trend line in just like that now You can see there was just a five wave structure this trend line held bullish now Is it going to remain bullish like that? I do not know But we're going to put our Fibonacci retracement tool back up there and What am I focused with so I can see on this fall? We had a We have our fifth wave come in right here, and then we have a ABC Now I'm gonna switch it back to a day chart. I know I keep I keep missing some information So I can see on my wave five We have a 1 2 3 4 5 if I take the structure from my wave 5 where does this ABC retracement go to? So I'll take the top of the wave The top of the move to the bottom of the move So I went from right here the top of my wave 5 to the bottom of my wave 5 now I could even put that bottom right here because this is actually where the wave 5 ends and you can see This gets rejected at the 702 if I were to go down to this all-time bottom wick The candle was right on that 702 retracement now We end up getting off of that that 702 retracement by following with a one two Three four five wave structure. That is exactly what I'm looking for and stuff like that So how am I gonna determine how the price of Apple is gonna get the 96 bucks? We're going to take top to the move bottom move. Here's our 702 retracement This all these wave structures inside here I look at it as just a wave one that is a wave one So I'm more focused on this drop right here. This is what I think that initial drop was now I think the 702 retracement is just this retracement right here so This is going to be a wave one Here is my wave two now. I already know this is a 28% drop now. I can calculate from my retracement 28% is going to be the same length wave 28% Puts me right there at a hundred and eighteen dollars now I'm going to mark that in 118 bucks right there So there is a potential ABC correction now I'm also going to put a line a horizontal line right on that now Look at this support that we have built up off of this line now if I were to zoom in over here I can also see here's a gap fill. Here's a gap fill This is a clear buying window now just so happens that This buying window is from 116 dollars To a hundred and twenty dollars right what let's let's go pull up that everything money Where I'm first getting interested in Apple stock we'll go to history. We'll look at Apple That 120 is exactly where I want to be interested in the stock is that a coincidence? I you know, I do not know Now what is possible now back to the chart now? What is possible and what I've seen multiple times I have multiple examples of this and I will be showing those examples is If this is a one two three and we get the price here You're gonna have gap-fill buyers. You're gonna have buyers off of this support now What is potential that could happen this could be a wave four to back test the bottom of wave one? So now what I can do if I think that this is going to be a one two three four five wave structure to the downside I can take that 28% fall from the bottom of wave one and I can anticipate that for a Brief estimate of how the price is going to drop And I'm gonna say at the price at this point in time There's gonna be more sellers and buyers and I could potentially look for a 28% drop from the top of my wave four So if I were to do a 28% drop That puts me at a price of around 93 dollars Now I can't make that price up Now what's interesting about 93 dollars is that is below my gap out my gap fill went away Look at this gap fill right there Now I did not have a crystal ball for all I know all of this is baloney and none of this is going to happen But if this transpires like this and we get a five-wave structure Down to this gap fill I will buy this gap fill if we get a look like this I will probably be buying it from 105 down to that gap fill as well because that is where I'm interested in the price of an apple but Man this video went a little bit longer than I anticipated but That gives you a brief example of how I use a Fibonacci tool and how I can estimate how the price can potentially fall to something But isn't it crazy how it lines up that way? I'm very focused on this ninety six dollar gap and this five-wave structure puts me at ninety three dollars Is that a coincidence? You know, I don't know It's all crazy to me too, but that is going to wrap this video up I hope you guys enjoy the content and we will see you on the next video