Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Inc. (AAPL),, Inc. (AMZN): Different Attitudes Towards Fibonacci Ratios

Apple Inc. (NASDAQ:AAPL) and, Inc. (NASDAQ:AMZN) have caught CNBC’s Jim Cramer’s interest. Mad Money’s host analyzes the charts in an unusual manner, which implies the usage of Fibonacci Time and Price Analysis. This particular technique is made available by Carolyn Boroden on her website and seems to present sufficient explanation on price fluctuations to Cramer.

Apple Store on 5th Avenue, New York City. Designed by San Francisco based design firm Eight Inc.

We’re off with Apple Inc. (NASDAQ:AAPL), which has seen its price follow an unpredictable pattern starting with the second of this month. Its value  is currently around $101, down %0.76 throughout September 16th. As Mr. Cramer explains, there are many hedge funds looking to raise their liquidity in order to pile up shares in Alibaba (BABA) and Apple Inc. (NASDAQ:AAPL) is a core holding of these funds, thus some sell the Cupertino, California-based tech giant in order to get a piece of the Chinese e-commerce colossus. Moreover, the former company is still worth buying, even at this level, not just due to new products, but also because Fibonacci ratios are on its side. So how does this work?

“Boroden looks at the size of the previous swings in the stock’s price then she runs those moves through the prism of the Fibonacci ratios I just mentioned [23.6%, 38.2%, 50%, 61.8%, 100%] to find key levels where a given stock is likely to change course,” said Jim Cramer.

The prediction is bound to a certain percentage ratio from a swing, which happened recently thus anticipating a bump in Apple Inc. (NASDAQ:AAPL)’s price up to $133 or $128, depending on which ratio the swing will be repeating.

Now,, Inc. (NASDAQ:AMZN)’s stock price has been put to the same analysis and the good news couldn’t be reproduced.

“This is one source of Alibaba funds that’s directly impacted by healthy Alibaba and is surely doesn’t bear up to close scrutiny versus his Chinese rival. Put simply, if you like Amazon, you should love Alibaba and sell the Amazon for the Alibaba,” stated Mr. Cramer.

Another reason for such a bearish attitude is the fact, Inc. (NASDAQ:AMZN)’s price is currently below its 200 and 50 day moving averages.


Disclosure: none

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!