Jun 03

Apple Consolidation Calls for More Advances

Apple (NASDAQ:AAPL) advances a modest 0.05% on Tuesday trading session, testing the psychological barrier at $322 per share.

On the technical side, the big picture reveals the advance that the technology company did, which shows an incomplete bullish structural series that began on March low at $212.61 per share.

Apple, in its 2-hour chart, shows the price movement advancing in an incomplete wave ((c)) of Minuette degree identified in black, which belongs to wave B of Minor degree identified in green.

Simultaneously, the incomplete wave (c) in black, and the bearish divergence drawn in red, reveals that AAPL moves in its wave (v) of the Minuette degree in blue. In this context, the internal structure of the fifth wave in blue exposes a consolidation pattern as a contracting triangle. This Elliott wave pattern subdivided into five internal segments suggests the possibility of a new upside that could complete the upward structural series of the wave((c)) of Minute degree.

If the price action drives AAPL to exceed the last January high at $327.84 per share, it could complete a second structural series subdivided into three internal waves, which according to the Elliott wave theory, should correspond to an irregular flat pattern. The implication of this scenario drives us to anticipate the next decline corresponding to wave C of Minor degree in green. This limited decline couldn’t exceed the origin of wave B at $212.61 per share. On the other hand, the intraday bias remains on the bullish side as long as AAPL continues being traded above $300.40 per share.

In conclusion, our short-term bias remains on the bullish side, while AAPL remains moving above $300.40 per share. On the other hand, a breakdown below the last swing low of $313.10 a share would warn us that the bullish sequence corresponding to wave B has finished. We should expect a new downward movement, which, by the Elliott Wave Theory rules, should be developed into five internal waves.