By Orbex
The current AAPL structure suggests the development of the primary fifth wave, taking the form of an ending diagonal (1)-(2)-(3)-(4)-(5) of the intermediate degree. Wave ⑤ is the final part in the cycle impulse a.
It is likely that the market is currently in an intermediate wave (4). Most likely, this wave will take the form of a minor triple zigzag W-X-Y-X-Z. We see that more than half of this structure is already complete.
There is a possibility that the price within the correction (4) will fall to the support level of 137.16, located on the lower red line.
After the end of the correction (4), the market may push off and start moving in the opposite direction in the intermediate wave (5) towards the 195.99 area. At that level, waves (3) and (5) will be equal.
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In an alternative scenario, the ending diagonal fully completed its pattern. And with it the entire cycle wave a ended.
Thus, according to this scenario, in the upcoming trading weeks, market participants will see a drop in the value of shares in a cycle correction b. This may take the form of a double zigzag Ⓦ-Ⓧ-Ⓨ, as shown on the chart in red trend lines.
There is a high probability that the bears will be able to bring the market to the previous low – 115.79. At that level, the primary fourth correction ended earlier.
Article by Orbex
Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com
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