Apple (NASDAQ:AAPL) reported stellar earnings, with the expected first-ever quarterly revenue of more than $100 billion, but its stock is down. What gives?
Well, in my last Apple article from three weeks ago, I already showed using detailed Elliott Wave Principle (EWP) analysis:
“Thus, AAPL has so far adhered almost picture-perfect to the ideal/text-book Fibonacci-based EWP count for (grey) minute waves-ii, iii, iv. Therefore, it is only logical to assume minute wave-v will continue to do the same: adhere to the text-book Fibonacci-based EWP count and target $142-143. From there, minor-4 and -5 will still need to develop, targeting ideally $129.50 and $151.60, respectively.”
And what did we get?
Apple topped this week at $145, right around the (grey) 200% and (green) 161.80% Fibonacci-extensions. The former is a typical/standard 5th wave target, for in this case (grey) minute-wave-v, and the latter is an ideal 3rd wave target. In this case, for the (green) minor-wave-3. So far, so good, everything is still going as anticipated since Nov. 11, 2020, (see here). With an almost perfect (grey) v=i relationship (grey arrow), it appears most likely minor-3 has topped. After 3 comes 4 and wave-4 down to ideally around the (green) 100% extension should now be underway, if this week’s high holds.
Then, as said in my last updates, all that is left is the green minor-wave-5 to around $150 before we should expect a much larger correction.
Apple daily candlestick chart with technical indicators and preferred Elliott Wave count:
Bottom line: Over the last three months, Apple stock has adhered to the EWP and associated Fibonacci-wave extensions and retraces, showing once again the EWP can be a powerful tool in forecasting an instrument’s pending highs and lows. Therefore, I must continue to stick to the path as outlined, and if this week’s high holds on a weekly closing basis, I anticipate a decline back to around $130 before the last leg higher to ultimately $150+ tacks hold.