AAPL seems to be making the fourth corrective wave of the bullish Motive Wave (green coloured wave). This seems so because the earlier wave resembled a bearish Corrective Wave (red coloured wave). Also notice that during this bearish Corrective Wave, AAPL formed an AB = CD pattern.
After the first impulsive wave of the bullish Motive Wave, the second wave ie. the corrective wave 2 made a 38.2 percent retracement.
The fourth wave ie. the corrective wave 4 of the bullish Motive Wave has made a 50 percent retracement. Usually the fourth wave retraces between 23.6 to 38.2 percent retracement. However, since the overall market is weak, I think the retracement went down to 50 percent level.
In the fourth corrective wave 4, a triangle formation is in progress (yellow coloured). This looks like a barrier triangle since legs 1 and 3 are at the same level. Each of the three legs has three sub-waves.
AAPL should start moving up from today towards the upper trend line of the triangle, making fourth leg of the barrier triangle. Then, descend a little to make the 5th leg, thus completing the barrier triangle formation (3-3-3-3-3) and also fourth corrective wave 4.
After completion of fourth corrective wave 4, impulsive wave 5 should begin. Usually impulsive wave 5 is between inverse 1.00 to 1.618 of corrective wave 4. Impulse wave 5 would have reached 215 in a strong market. However, since the overall market is weak, AAPL will be able to move just above 200.
Thereafter, we can expect a deep correction.
After the first impulsive wave of the bullish Motive Wave, the second wave ie. the corrective wave 2 made a 38.2 percent retracement.
The fourth wave ie. the corrective wave 4 of the bullish Motive Wave has made a 50 percent retracement. Usually the fourth wave retraces between 23.6 to 38.2 percent retracement. However, since the overall market is weak, I think the retracement went down to 50 percent level.
In the fourth corrective wave 4, a triangle formation is in progress (yellow coloured). This looks like a barrier triangle since legs 1 and 3 are at the same level. Each of the three legs has three sub-waves.
AAPL should start moving up from today towards the upper trend line of the triangle, making fourth leg of the barrier triangle. Then, descend a little to make the 5th leg, thus completing the barrier triangle formation (3-3-3-3-3) and also fourth corrective wave 4.
After completion of fourth corrective wave 4, impulsive wave 5 should begin. Usually impulsive wave 5 is between inverse 1.00 to 1.618 of corrective wave 4. Impulse wave 5 would have reached 215 in a strong market. However, since the overall market is weak, AAPL will be able to move just above 200.
Thereafter, we can expect a deep correction.
Trade active:
AAPL's 4th wave is nearly complete. It turns out that this is a symmetrical triangle (and not a barrier triangle) as I had first expected. Nevertheless, the triangle formation is reaching a completion.
5th wave will now start. This is usually between 100 to 161.8 percent projection of 4th wave which 200 to 220 for AAPL.
AAPL's rally to last till end of the year.
5th wave will now start. This is usually between 100 to 161.8 percent projection of 4th wave which 200 to 220 for AAPL.
AAPL's rally to last till end of the year.
During the third impulsive wave, the only time AAPL did significant consolidation was in the month of May 2022 when for over two weeks, price wavered around 170.
Yesterday, AAPL formed a second pivot at this level. This level should hold today.