The Apple (NASDAQ: AAPL) stock has recently undergone a pullback following the release of the company’s latest financial results, which showed a mixed performance and a cautious outlook.
Despite encountering these challenges, technical analysis suggests a high probability of significant upward movement in Apple’s shares, with industry experts forecasting a potential target price of $280.
In a post dated August 2 on TradingView, the analyst TradingShot highlighted Apple’s resilience in the face of difficulties and its consistent growth over the last decade, consistently exceeding expectations.
The analysis carried out on a monthly timeframe indicates a consistent upward trend, supported by the 50-month moving average (1M MA50), pointing towards a positive trajectory for the stock.
The analyst observes that Apple has demonstrated clearly defined periods of growth and consolidation historically.
For example, between 2013 and 2014, there was a notable increase of 145.95% in the stock price. Similarly, after the correction in 2015-2016 triggered by China’s economic slowdown, Apple recovered by 161.56% before undergoing another correction towards the 1M MA50.
The recent phase labeled as “Channel Up” post the 2022 inflation crisis reflects previous patterns of substantial growth post-correction, suggesting a potential significant upward trajectory for Apple.
Important support levels to monitor include the $170 threshold and the 1M MA50 around $160.
Crucial indicators reinforce positive viewpoint
The weekly chart emphasizes several key indicators that support an optimistic outlook. Despite recent setbacks, Apple remains well-positioned for further expansion.
The Relative Strength Index (RSI) is currently at extremely oversold levels, indicating a possible reversal and buying opportunity.
Historical patterns indicate that following each Death Cross – signaling a bearish market where the short-term moving average crosses below the long-term one, Apple’s stock has consistently rebounded.
In 2013, there was a 55.93% gain post a Death Cross. In 2015, a Death Cross preceded a 53.54% recovery. Despite a Death Cross in 2022, Apple’s stock exhibits signs of a potential turnaround, supported by the RSI’s exceptionally oversold levels.
The 200-week moving average (1W MA200) often serves as a critical level of support. Historical data shows that whenever Apple’s stock approaches this moving average, a rebound typically follows, underscoring its importance as a support level.
Recent declines have witnessed the stock finding support in close proximity to this average, indicating the potential for an upward swing.
Given the current technical setup and historical trends, analysts predict that Apple’s stock price could approach $300 during the ongoing “Channel Up” phase.
This target aligns with past growth patterns and solid support at the 1M MA50. Moreover, the supportive RSI levels strengthen an optimistic perspective, signaling a high likelihood of further increases.
Broader Market Overview
In the third quarter, extending until September, Amazon anticipates revenues ranging between $154 billion and $158.5 billion. Amazon’s cloud computing segment, Amazon Web Services (AWS), exhibited robust performance, generating $26.3 billion in revenue, surpassing the projected $26 billion.
Analysts maintain a positive stance on the growth prospects of AWS, viewing it as a significant catalyst for Amazon’s operations, particularly in the realm of artificial intelligence (AI).
Apple’s stock continues to demonstrate compelling bullish potential, backed by long-term technical indicators and historical performance.
The convergence of multiple technical factors, including favorable RSI levels, indicates that Apple is strongly positioned to reach the $280 target, offering an appealing investment opportunity for stakeholders.
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