Apple (NASDAQ: AAPL) stock recently underwent a retreat after the company’s latest financial results were released, showing a mixed performance and a cautious outlook.
Despite facing these obstacles, technical analysis indicates a strong likelihood of Apple’s shares rising significantly, with industry experts predicting a possible target price of $280.
In a post on TradingView dated August 2, the analyst TradingShot emphasized Apple’s ability to withstand challenges and its consistent growth over the past decade, outperforming expectations consistently.
The analysis done on a monthly timescale reveals a steady upward trend, supported by the 50-month moving average (1M MA50), indicating a positive trajectory for the stock.
The analyst points out that Apple has displayed distinct phases of growth and consolidation historically.
For instance, between 2013 and 2014, the stock exhibited a significant surge of 145.95%. Similarly, following the correction in 2015-2016 due to China’s economic slowdown, Apple rebounded by 161.56% before experiencing another correction towards the 1M MA50.
The recent “Channel Up” phase following the 2022 inflation crisis mirrors earlier patterns of substantial growth post-correction, indicating a potential significant upward movement for Apple.
Critical support levels to watch include the $170 mark and the 1M MA50 around $160.
Key indicators bolster optimistic perspective
The weekly chart underlines several crucial indicators that reinforce a bullish stance. Despite recent setbacks, Apple remains positioned favorably for further growth.
The Relative Strength Index (RSI) stands at exceedingly oversold levels currently, indicating a possible turnaround and a chance to buy.
Past trends show that following each Death Cross – indicating 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 after a Death Cross. In 2015, a Death Cross was followed by a 53.54% recovery. Despite a Death Cross in 2022, Apple’s stock shows signs of a potential reversal, supported by the RSI’s extreme oversold levels.
The 200-week moving average (1W MA200) frequently acts as a vital support level. History shows that whenever Apple’s stock nears this moving average, it tends to bounce back, highlighting its significance as a support level.
Recent declines have seen the stock finding support close to this average, suggesting the potential for upward movement.
Considering the current technical scenario and historical data, analysts forecast that Apple’s stock price might approach $300 during the ongoing “Channel Up” phase.
This target aligns with the past growth trends and sturdy support at the 1M MA50. Additionally, the supportive RSI levels reinforce an optimistic outlook, indicating a high potential for further gains.
Wider Market Perspective
In the third quarter, spanning until September, Amazon anticipates revenues between $154 billion and $158.5 billion. Amazon’s cloud computing arm, Amazon Web Services (AWS), displayed robust performance, generating $26.3 billion in revenue, surpassing the anticipated $26 billion.
Analysts maintain a positive outlook on AWS’s growth prospects, viewing it as a significant driver for Amazon’s operations, especially in the field of artificial intelligence (AI).
Apple’s stock continues to exhibit compelling bullish potential, supported by long-term technical indicators and historical performance.
The alignment of multiple technical factors, including favorable RSI levels, suggests Apple is well-positioned to meet the $280 target, presenting an attractive investment opportunity for stakeholders.
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