According to the current AAPL stock chart, we can assume the formation of a corrective trend, which takes the form of a 3-wave zigzag of the cycle degree a-b-c| FXMAG.COM

The first impulse wave a looks fully completed. A complex correction b is currently under development, the structure of which hints at the primary double zigzag Ⓦ-Ⓧ-Ⓨ. The actionary leg Ⓦ and the zigzag intervening wave Ⓧ look complete. That is, the last sub-wave Ⓨ is being built now.

The primary wave Ⓨ most likely takes the form of an intermediate zigzag (A)-(B)-(C), where (A) is a leading diagonal, and the correction (B) is a zigzag, for which the final impulse sub–wave C is needed.

The price in the minor impulse wave C may rise to 166.77. At that level, intermediate correction (B) will be at 76.4% of leading diagonal (A).

Let's consider an alternative scenario in which the bearish primary wave Ⓨ is more complex in structure and takes the form of an intermediate double zigzag (W)-(X)-(Y). The intermediate waves (W) and (X) may already be fully completed.

Thus, the market is currently in the last sub-wave (Y), or rather in its last part - the impulse C.

It is assumed that the price in impulse C may fall to 121.89. At that level, wave Ⓨ will be equal to wave Ⓦ.

Jing Ren

Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London. Later on he worked as a senior analyst within the FX brokerage industry where he developed strategies in trading and risk management. With solid understanding of market dynamics he founded Wensfer to offer research and asset management services.