Apple - This juggernaut still has a long way to go, barring minor technical pullbacks
Technical Analysis: Elliott Wave | APPL CMP: 244 | Dt 10/25
Tl;dr - APPL, will continue its march higher over the next few years. However, in the short term a technical pullback is very likely.
Section 1 - Simple speak
Apple has been a darling of equity markets for over two decades and has had a remarkable run since 1997.
Especially since 2003, when it launched the iPod and kickstarted Wave 3 (Elliott Wave). This third wave advance still has some distance left and should see the price rise for a few more years.
In the short term, however, the price appears a bit stretched and is likely due for a pullback. Technical levels for this potential pullback are highlighted in the section below."
APPL Chart #1 - Macro view
Section 2 - Technical Analysis using Elliott Waves
Summary
Macro view - AAPL has been in a massive impulse wave since the launch of the iPod. It appears to still be within Primary Wave 3, which has some distance left to cover.
This Primary Wave 3 could see the price reach new highs, potentially going as high as $400 in the coming years (see Chart #1).
Short term wave count - The impulse wave that started in January 2023 is nearing its end, with Wave 5 currently unfolding. Once this five-wave impulse ends, it is expected to be followed by a short-term retracement.
Vertical lines in Chart #2 represent inflection points, which indicate AAPL earnings and U.S. elections.
Technical targets for the retracement are marked in Chart #2 as "Retracement (R) Targets."
If the price breaks the red level (marked as "invalidation"), the current wave count will need to be reconsidered.
APPL Chart #2 - Zoom in for technical levels
Section 3 - Analyst Rating vs EW count
Analyst rating suggests bullish outlook for Apple. EW projection however is for the price to start a corrective leg in the short term before resuming the upward trend.
Short Term - Analyst rating is “not in sync” with EW count
Long Term - Analyst rating is “In sync” with EW count
Source - Yahoo Finance
