Apple (NASDAQ: AAPL) shares recently experienced a pullback following the company’s latest earnings report, which presented mixed results and a cautious forecast.
Despite these challenges, technical analysis suggests that Apple’s stock is poised for a significant upward movement, with analysts projecting a potential price target of $280.
In an August 2 TradingView post, analyst TradingShot highlighted Apple’s resilience and decade-long growth, consistently beating expectations.
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The analysis on a monthly time frame shows a steady uptrend, supported by the 50-month moving average (1M MA50), maintaining the stock’s bullish trajectory.
According to the analyst, Apple has historically demonstrated distinct phases of growth and consolidation.
For instance, during the 2013 to 2014 phase, the stock saw a significant rise of 145.95%. Similarly, post the 2015 to 2016 correction due to China’s economic slowdown, Apple rallied by 161.56% before another correction towards the 1M MA50.
The most recent “Channel Up” phase followed the 2022 inflation crisis, mirroring previous patterns of significant growth post-correction, indicating that Apple is poised for another substantial upward movement.
Key support levels include the $170 level and the 1M MA50 around $160.
Key indicators reinforce bullish outlook
The weekly chart highlights several important indicators that reinforce the bullish outlook. Despite recent pullbacks, Apple remains in a favorable position for further gains.
The Relative Strength Index (RSI) is currently at extreme oversold levels, suggesting a potential reversal and buying opportunity.
Historical patterns reveal that after each Death Cross – a bearish signal where the short-term moving average crosses below the long-term moving average, Apple’s stock has consistently rebounded.
In 2013, a Death Cross was followed by a 55.93% gain. In 2015, another Death Cross preceded a 53.54% recovery. Most recently, despite a Death Cross in 2022, the stock is poised for a potential reversal, supported by extreme oversold levels on the RSI.
The 200-week moving average (1W MA200) often acts as a crucial support level. Each time Apple’s stock approaches this moving average, it tends to bounce back, reinforcing its role as a support level
Recent pullbacks have seen the stock find support near this average, indicating potential for upward movement.
Given the current technical setup and historical performance, analysts project that Apple’s stock price could peak near $300 in the ongoing “Channel Up” phase.
This target aligns with the historical growth patterns and the strong support at the 1M MA50. Additionally, the RSI levels reinforce the bullish outlook, suggesting that the stock is primed for further gains.
Broader market context
For the third quarter, which runs through September, Amazon expects revenue of $154 billion to $158.5 billion. Amazon’s cloud computing segment, Amazon Web Services (AWS), showed strong performance, with revenue reaching $26.3 billion, topping consensus estimates of $26 billion.
Analysts remain optimistic about AWS’s growth prospects, viewing it as a key driver for Amazon’s business, especially in the artificial intelligence (AI) segment.
Apple’s stock continues to show strong bullish potential, supported by long-term technical indicators and historical performance.
The convergence of multiple technical factors, including favorable RSI levels, suggests that Apple is well-positioned to reach the $280 target, offering a compelling buy opportunity for investors.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
