$AAPL Elliott Wave Short Term Update July 30, 2024
## AAPL Short Term Elliott Wave Update — July 30, 2024
Apple Inc. (AAPL) is approaching the end of a classic Elliott Wave zigzag correction, labeled as an ABC pattern. This formation is characterized by a three-wave structure, typically indicating a corrective phase within a larger trend. The ongoing correction in AAPL has been closely monitored by traders and investors, who are anticipating a potential reversal as the pattern reaches its conclusion.
### Breakdown of the ABC Correction
1. **A Wave:** The initial decline, or “A” wave, began with a sharp drop from $237 to $222. This wave typically represents the first leg of a correction and often sets the tone for the entire pattern. The significant downward movement during this phase suggested a shift in sentiment, leading to increased selling pressure.
2. **B Wave:** The subsequent “B” wave saw a modest recovery, with AAPL rebounding from $222 to $227. This wave generally acts as a counter-trend move, retracing a portion of the “A” wave’s decline. The strength and duration of the “B” wave can vary, but in this case, the bounce was relatively subdued, indicating a lack of strong bullish conviction.
3. **C Wave:** Currently, AAPL is in the midst of the “C” wave, which is projected to complete the zigzag correction. If the “A” wave’s length is equal to the “C” wave’s, we could see AAPL target a range between $212 and $214. This projection is based on the principle of equality in Elliott Wave Theory, where the “A” and “C” waves often mirror each other in length. The “C” wave typically has a similar magnitude to the “A” wave but can occasionally extend further.
### Market Context and Potential Reversal
The broader market context, particularly the NASDAQ’s current formation, is crucial in assessing AAPL’s near-term outlook. The NASDAQ is exhibiting signs of an ending diagonal on the fifth wave of its own “C” wave correction. An ending diagonal is a specific pattern in Elliott Wave Theory that often precedes a significant reversal, indicating that the prevailing trend (in this case, downward) is losing momentum.
For AAPL, the formation of the ending diagonal in the NASDAQ suggests that a market-wide reversal could be imminent. As a major constituent of the NASDAQ, AAPL’s movements are closely tied to broader market trends. Therefore, a reversal in the NASDAQ could likely signal a similar shift for AAPL, potentially marking the end of its current corrective phase.
### Conclusion
As AAPL nears the projected bottom of its “C” wave, around the $212-$214 range, traders should be vigilant for signs of a reversal. The culmination of the zigzag correction, combined with the broader market dynamics, particularly the ending diagonal in the NASDAQ, suggests that the bearish pressure may be waning.
Investors should watch for a break above the recent highs around $227, which could confirm the end of the correction and the beginning of a new upward trend. However, caution is warranted until a clear reversal is confirmed, as the market remains susceptible to further downside risks. In the meantime, keeping an eye on broader market indicators and AAPL’s price action will be crucial for making informed trading decisions.
