Apollo Micro Systems (APOLLO) EW-Analysis

The correction can be the biggest opportunity for this stock.

Since its IPO on 22 January 2018, Apollo Micro Systems formed its major bottom in March 2020. From that low, the stock initiated its first bullish impulse, forming light blue wave 1, followed by the corrective light blue wave 2.

After the completion of wave 2, Apollo gained significant bullish momentum and developed a strong light blue wave 3, followed by the corrective light blue wave 4. From there, the stock entered its final bullish expansion, completing light blue wave 5.

With the completion of this five-wave cycle, green wave 1 of a higher-degree cycle was finalized. Green wave 1 marked the current all-time high at $354.70.

This green wave 1 represents the first bullish fractal of a potential long-term bull market. However, before confirming this long-term bullish scenario, Apollo must complete a corrective phase in green wave 2. Only after a full corrective structure can the larger bullish impulse be validated.

We expect green wave 2 to unfold in a classic A–B–C corrective structure:

• The current sell-off represents orange wave A.
• After wave A completes, we anticipate a temporary bullish recovery forming orange wave B.
• This should be followed by a more significant decline in orange wave C, which would complete the overall correction and terminate green wave 2.

For the expected termination of green wave 2, we have identified a Fibonacci retracement zone where the correction is likely to complete and where renewed bullish momentum could begin. This zone marks the potential starting point of a long-term green wave 3, targeting new all-time highs.

Fibonacci Retracement Zone:

• 61.8% retracement: $138.06
• 78.6% retracement: $79.08
• 88.7% retracement: $43.62

If price action enters this zone and shows confirmation signals, we consider it a significant opportunity to buy or accumulate shares at highly attractive levels.

Although the stock does not have a long trading history, its price structure has been strongly bullish. Given its positioning within a major sector, this makes Apollo Micro Systems an attractive long-term investment candidate.

If structural changes occur or the Fibonacci retracement zone is activated, we will provide updates immediately.

Kind regards,
Monalytics

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