Afterpay (APT.ASX) has been a key leader in the ‘buy now pay later‘ market and the share price has experienced considerable gains throughout 2019. In this post I review the chart of Afterpay and note some key Resistance and Support levels to keep in mind.

APT daily: Jan 7th 2019:  I was a bit wary of this triangle breakout back in January but I need not have been!

APT daily: the current daily chart shows that price action has delivered up to $15 since the triangle breakout. This stock was the topic of discussion at a dinner function I attended last night with ambitious targets being put forward by some at the table. However, a quick look at the technicals might help to moderate any over zealous enthusiasm because, as traders know; trends do not travel in straight lines forever!

I think it is worth noting that the 161% Fibonacci extension of the swing Low move (Aug-Dec 2018) is up near the whole-number $30 level. Thus, I would be on the lookout for any pause, or even pullback, at this level given the recent lengthy bullish run. Any push through the $30 would bring the $35 level into focus as this is near the 200% Fibonacci extension.

APT Daily Ichimoku Cloud:  Price action is above the daily Cloud but this is not the key feature to note here. What is important is the divergence between Price Action and Volume. This is considered a bearish signal but, if nothing else, it should be read as a warning to be on the lookout for any weakness, or even breakout move, whether that be to the upside or downside!

APT weekly: to help assess downside targets for any potential weakness I have placed the Fibonacci retracement tool on this recent swing High move (Jan-May 2019). It is worth noting that the 61.8% Fibonacci level, another popular pullback level, is down near previous S/R at $18 and so that might be a long-term target IF any weakness sets in.

Note that a pullback to $18 would not be out of the ordinary even if price action is to continue higher in the long run. Pauses and pullbacks are a normal part of the ebb and flow of price action.

Summary: Afterpay (APT) has enjoyed a lengthy bullish run since the start of the year, albeit on declining volume. Key 161% Fibonacci resistance lies just a head, near $30, and so traders would be well advised to watch for any clues of weakness that might point to a pause or pullback. A pullback to the $18 level, near the weekly 61.8% Fibonacci, would not be an extreme move and could still underpin an overall bullish thesis for this stock; a thesis that I happen to hold.

Disclosure: I hold stock of APT.