APP | Weekly Structure | ABC Correction Holding the 0.618 FibAppLovin Corp. Class ABATS:APPmaratteoThesis: APP has completed what I see as an almost textbook ABC correction, retracing directly into the 0.618 Fib at $291. Price has now held this area for four consecutive weeks while the 200 WMA continues to rise toward the same level. The stock has also recently been moving independently from the broader US market, which makes the current structure particularly interesting to me. Technical Setup: - ABC correction completed into the 0.618 Fib at $291 - $291 has now held as support for four consecutive weeks - The rising 200 WMA is approaching the same area and could provide additional long term support - Recent price action has been relatively independent from the broader US market - As long as $291 continues to hold, I believe the next major move can be a reversal higher Fundamentals: The technical setup is supported by exceptionally strong underlying fundamentals. Q2 revenue reached $1.92B, growing 53% YoY, while net income reached $1.27B. That puts the net margin at roughly 66%. Adjusted EBITDA reached $1.61B with an 83.9% margin, while free cash flow came in at $863M. Very few businesses are currently combining this level of growth with this level of profitability. Targets: - First major target is a return toward the previous ATH around $745 - My primary long term target remains the $1,200-$1,400 area The second target is a multi-year objective and depends on the larger structure continuing to develop as expected. Invalidation: $291 is now the key level on this chart. A sustained loss of this area would weaken the current setup and make me reassess the wave structure. Positioning: I recently started building a position around $320. For me, the combination of the completed ABC correction, the 0.618 Fib, four weeks of support, the rising 200 WMA and outstanding business fundamentals creates a very attractive long term setup.