Apple Elliott Wave analysis: More downside before the next buying opportunity

As part of our WaveTraders service, we are not only covering currencies, cryptocurrencies, metals and indices, but also paying close attention to some of the biggest US stocks. I haven’t covered many of them in our latest webinars, so I thought it would be a good time to share another free update.

Yesterday, we discussed Google, where price is testing some important support levels. This time, I want to focus on another major technology name: Apple.

Apple pulls back from the highs

Apple has been coming lower from around $344, followed by some stabilization near the $300 area. However, the recovery from there looks corrective and could represent only a temporary wave B rally.

What’s particularly interesting is that this recovery filled the gap from a few weeks back. As we know, gaps can act as important magnets for price, but once they are filled, they can also become areas where the market turns again.

We are now seeing signs of a new reversal from that area, which raises the question of whether Apple’s correction still has another leg to the downside.

Wave C could bring Apple to lower levels

From an Elliott Wave perspective, I would not be surprised to see another leg lower for wave C of wave four. This correction could still be part of a higher-degree diagonal formation, meaning that the longer-term bullish structure does not necessarily have to be finished.

However, in the near term, the current setup suggests that lower prices could still be seen before a more attractive opportunity develops.

For someone looking to join the longer-term trend, I think the $214–$270 area could offer much more attractive levels to watch rather than chasing the market at current prices.

The important point is that even strong stocks do not move in a straight line. Corrections can create much better opportunities, and that’s exactly what we will be watching for on Apple in the weeks and months ahead.

If you like this kind of analysis and want to stay on track with Apple and other US single stocks, as well as currencies, indices, commodities, metals and cryptocurrencies, you are welcome to apply for a 7-day WaveTraders trial and get full access to our charts and updates.