Apple – Monthly Analysis – ElliottWave

CANDLES

Apple closed the 2M frame in February with a Bearish Engulfing and immediately followed the formation with a move downward. Momentum, which held around neutral during January–February, has now started to lean bearish. The daily trend is already bearish, and the weekly has lost major supports for the third time in the last two months—definitely a concerning development.

Overall, the stock is moderately bearish in the short and mid term, with a high risk that the bearish momentum could expand to larger frames.

Elliott Wave

Mid Term

At this point, two scenarios appear most probable. Apple could be forming an extended wave (iv) in red, which is currently the primary count. Alternatively, the stock may be developing a larger correction—wave 2 of a higher degree.

While the distinction between the two is subtle, the projected lower boundary of the channel may serve as the key watershed level between these counts.

SUMMARY

Apple’s technical posture has deteriorated after the February 2M Bearish Engulfing triggered immediate downside follow-through. The daily trend is already bearish, and repeated losses of key supports on the weekly frame suggest that downside pressure is increasing. For now, the stock remains moderately bearish in the short and mid term, with a growing risk that the weakness expands to larger frames.

From an Elliott Wave perspective, Apple is likely developing either an extended wave (iv) or a larger-degree wave 2 correction. The projected lower boundary of the channel will serve as the key watershed level that may determine which scenario ultimately unfolds.