iPads Expected at Apple Event, But Hold On For the AI ChipsApple enthusiasts can finally breathe a sigh of relief. The wait for new iPads is nearly over, with a splashy Apple event titled "Let Loose" scheduled for today. This comes after an unusually long gap between iPad releases.
New iPads Take Center Stage
According to reliable sources, the spotlight will be on the latest iPad lineup. Rumors suggest the unveiling of a new iPad Pro boasting a cutting-edge OLED display, potentially accompanied by a larger 13-inch version. An upgraded iPad Air with a similar display technology might also be part of the show.
M4 Chip: A Surprise Guest?
While the focus is firmly on the iPads, whispers suggest a surprise appearance by the next-generation M4 chip. This unveiling would be a mere six months after the launch of the M3 series, prompting speculation about Apple's strategic direction.
A.I. Chip Development: A Side Story
An article from Wall Street Journal also touches upon Apple's development of a custom-designed chip for artificial intelligence applications within data centers. However, the Wall Street Journal report casts doubt on whether this chip will ever see real-world deployment.
wsj.com/tech/ai/apple-is-developing-ai-chips-for-data-centers-seeking-edge-in-arms-race-0bedd2b2
Investor Takeaway
The "Let Loose" event holds significant promise for Apple investors. The launch of new iPads, particularly the potentially premium iPad Pro models, could generate a surge in sales. The M4 chip, if confirmed, could further solidify Apple's position as a leader in chip technology. While the A.I. chip development is intriguing, investors should likely focus on the more immediate impact of the upcoming iPad releases.
AAPL
AAPL Bearish Crab Pattern Will Start at 197$the detail is shown in the above Idea.
I made this Idea based on Candlestick Analysis and Harmonic pattern.
We are still in an uptrend and probably we see a significant decline toward the Crab support line in the Next Weeks.
AAPL Resistance and Support Levels Is shown in this chart.
GOOD Luck
AAPL Apple Options Ahead of EarningsIf you haven`t bought AAPL before reaching all time high:
or sold the beginning of the retracement:
Then analyzing the options chain and the chart patterns of AAPL Apple prior to the earnings report this week,
I would consider purchasing the 177.5usd strike price Calls with
an expiration date of 2024-5-3,
for a premium of approximately $2.36.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Can AI Be the iPhone's New Ace in the Hole?Apple, the tech giant synonymous with innovation, has faced a slump in iPhone sales. A recent report showed a 10.5% year-over-year decline, raising concerns among investors and analysts. However, a glimmer of hope emerges with Apple's growing focus on Artificial Intelligence (AI). Analysts are increasingly optimistic that these "nascent" AI offerings could be the key to reigniting iPhone sales.
The smartphone market has become increasingly saturated. Consumers are holding onto their devices for longer periods, with incremental upgrades failing to excite. Apple needs a game-changer, a feature so compelling that it compels users to upgrade. AI has the potential to be that difference-maker.
Here's how AI could breathe new life into iPhone sales:
• Personalized Experiences: AI can personalize the iPhone experience to an unprecedented level. Imagine an intelligent assistant that anticipates your needs, proactively adjusts settings, and curates content based on your preferences. This level of customization could make the iPhone feel like an extension of yourself, fostering a stronger connection with the device.
• Smarter Camera Features: AI can revolutionize smartphone photography. Advanced image recognition could remove unwanted objects from photos in real-time, suggest optimal composition based on the scene, and even enhance low-light shots. Such features would not only elevate photo quality but also simplify the process, making professional-looking photos accessible to everyone.
• Enhanced Security and Privacy: Security breaches and privacy concerns are major pain points for smartphone users. AI can play a crucial role in safeguarding user data. Imagine facial recognition that adapts to changes in your appearance or voice recognition that discerns between authorized and unauthorized users. Coupled with on-device processing of sensitive data, AI could make iPhones the most secure smartphones on the market.
• Voice Assistant Revolution: Siri, Apple's current voice assistant, faces stiff competition from Google Assistant and Amazon Alexa. AI advancements could transform Siri into a truly intelligent companion. Imagine a voice assistant that understands complex questions, engages in natural conversations, and seamlessly integrates with other smart home devices. This would not only boost user convenience but also position the iPhone as the central hub of the smart home ecosystem.
• Augmented Reality (AR) Applications: AI can be the driving force behind innovative AR experiences. Imagine using your iPhone to overlay furniture virtually in your living room to see how it looks before you buy it. Or, perhaps utilizing AI-powered translations in real-time during conversations abroad. Such AR applications, powered by AI, could unlock a whole new realm of possibilities for iPhone users.
Of course, challenges remain. Integrating complex AI features requires significant processing power, which could strain battery life. Additionally, ensuring user privacy while leveraging AI capabilities is paramount. Apple must strike a delicate balance between innovation and user trust.
Despite these challenges, the potential benefits are undeniable. By harnessing the power of AI, Apple can create a truly intelligent and personalized iPhone experience. This, in turn, could reignite consumer interest and propel iPhone sales back to new heights.
The success of this strategy hinges on Apple's ability to execute. They must develop robust AI features that are not just gimmicks but genuinely enhance the user experience. If Apple can achieve this, the iPhone might just reclaim its position as the most coveted smartphone on the market, breathing life back into sales and solidifying Apple's reputation as a leader in cutting-edge technology.
Apple's Q2 Earnings: Mixed Bag with Share Buyback Boost
Apple's fiscal second-quarter earnings report presented a mixed picture for investors. While earnings per share (EPS) surpassed Wall Street expectations, overall revenue and iPhone sales experienced a decline. However, the company's massive share buyback announcement signaled confidence in its future.
Earnings Beat Expectations, Revenue and iPhone Sales Fall
Apple reported earnings per share of $1.52, exceeding analyst estimates of $1.48. This indicates that the company remained profitable, with each share of Apple stock generating slightly more income than anticipated.
However, the news wasn't entirely positive. Total revenue for the quarter dropped 4% year-over-year to $89.5 billion. This decline highlights a slowdown in overall business compared to the same period last year.
Further dampening investor sentiment was a 10% year-over-year decline in iPhone sales. This, Apple's flagship product, is a crucial source of revenue for the company. The decrease suggests a potential softening of demand or increased competition in the smartphone market.
Tim Cook Cites Difficult Comparisons
Apple CEO Tim Cook offered some context for the declining revenue and iPhone sales. He attributed the figures to a "difficult comparison" to the stellar performance of the same quarter in 2023. Last year's Q2 saw a surge in demand for Apple products due to factors like pandemic-driven remote work and learning.
Share Repurchase Announcement: A Confidence Signal
Despite the decline in revenue and iPhone sales, Apple made a bold move by announcing a staggering $110 billion share repurchase program. This is the largest such program in the company's history.
Share repurchases, also known as stock buybacks, involve a company buying back its own shares from the market. This can have several implications:
• Boosting Stock Price: By reducing the number of shares outstanding, buybacks can increase the earnings per share (EPS) ratio, potentially making the stock more attractive to investors.
• Signaling Confidence: A large buyback program can be interpreted as a sign of management's confidence in the company's future prospects. They are essentially using excess cash to invest back into the company itself.
• Returning Value to Shareholders: Buybacks are a way for companies to return excess cash to shareholders. This can be particularly appealing to investors seeking to generate income from their holdings.
Looking Ahead: A Balancing Act
Apple's Q2 earnings report presents a company navigating a dynamic market landscape. While EPS exceeded expectations, declines in revenue and iPhone sales raise questions about future growth. The massive share repurchase program indicates a commitment to shareholder value, but the effectiveness of this strategy hinges on Apple's ability to reignite revenue growth.
Investors will be closely monitoring upcoming reports and developments to assess Apple's ability to overcome these challenges and maintain its position as a tech industry leader.
Apple Stock Surges 7% After Record-Setting $110B Stock BuybackApple stock ( NASDAQ:AAPL ) rallied 7% after the company announced a record-setting $110B stock buyback program, marking the largest buyback value ever announced in US history. The move follows Apple's second-quarter earnings, which topped Wall Street's estimates by 22%. The company's board authorized $110 billion in share repurchases, a 22% increase over last year's $90 billion authorization. This marks the largest buyback value ever announced in US history. Apple also reported a revenue of $90.8 billion for the three-month period ended on March 30, despite a 4.3% drop from the year-ago period.
The results came as a relief to investors, as Apple ( NASDAQ:AAPL ) has posted sales declines in the past five out of six quarters in the face of a tough smartphone market in China. Last month, Apple ( NASDAQ:AAPL ) was overtaken by Samsung as the world's No.1 phone maker, according to the latest data from research firm IDC.
Apple ( NASDAQ:AAPL ) did not provide formal guidance for the rest of its fiscal 2024, but finance chief Luca Maestri said the company expected the current quarter will deliver double-digit year-over-year percentage growth in iPad sales. The Services division is also forecast to continue growing, including subscriptions, warranties, licensing fees, and Apple Pay features.
Apple ( NASDAQ:AAPL ) reported reported net income of $23.64 billion, or $1.53 per share, down 2% from $24.16 billion, or $1.52 per share, in the year-ago period. iPhone sales fell nearly 10% to $45.96 billion, suggesting weak demand for the latest iPhone, the 15 Pro and Pro Max models, which were released in September. Sales of other Apple products, including its Apple Watch and AirPods headphones, also dropped 10% year-over-year to $7.9 billion.
Mac sales were up 4% to $7.45 billion, attributed to the upgraded M3 chip placed in the company's new MacBook Air models as of March.
Technical Outlook
Apple Inc. ( NASDAQ:AAPL ) stock is up 6.37% at the time of writing trading above the 200-day Moving Average (MA) with a Relative Strength Index (RSI) of 67.45 paving the way for further growth. The daily price chart indicates a gapper effect, it appears to be an up-side gap that occurred as a result of the buyback fundamental.
AAPL Share Price Soars after Record Buyback AnnouncedAAPL Share Price Soars after Record Buyback Announced
Yesterday, after the end of the main trading session, Apple published its report on its activities for the 1st quarter:
→ Earnings per share: actual = $1.53; expected = $1.505;
→ Gross income: actual = $90.75; expected = $90.36.
The better-than-expected report came as a relief to investors after reporting lower sales in five of the last six quarters. In addition, the following could give positive feedback to market participants:
→ Apple's forecast is that its iPad manufacturing and services business will grow at double-digit rates;
→ company investments in AI. “We think we're well positioned,” Chief Financial Officer Luca Maestri told Bloomberg Television's Emily Chang. CEO Tim Cook is expected to outline Apple's artificial intelligence strategy at its annual Worldwide Developers Conference in June.
→ Apple Inc.'s big plan to restore investor confidence. It consists of a record $110 billion share buyback and a 4% dividend increase.
As a result, AAPL's price rose nearly 8% in post-market trading, exceeding $185 per share, although yesterday's close was around $173.
Technical analysis of the APPL chart today shows that:
→ if trading opens today at a price above $180, a significant bullish gap will form on the chart, which can serve as support in the future;
→ price dynamics suggest that the bulls are trying to break the downward trend channel (shown in red), and send the price further within the ascending channel (shown in blue), which begins in 2023;
→ with the B→C move being approximately 50% of the A→B move, this is a long-term bullish sign that allows us to evaluate the pullback from the important psychological resistance at $200 as a correction within the long-term uptrend.
According to TipRanks, the average analyst price forecast for AAPL stock is $200 in 12 months. But it's possible that AAPL's target price could be raised given recent strong fundamentals.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Apple sees drop in revenue and net incomeApple delivered its financial results for the second quarter of fiscal year 2024. According to the report, the company generated revenue worth $90.753 billion, down 4.3% YoY, and net income of $23.636 billion, representing a decrease of 2.16% YoY. Operating income amounted to $27.9 billion for the same period, falling 1.5% YoY. In addition to that, Apple announced the largest share buyback program in the company’s history, amounting to $110 billion.
Net revenue = $90.7 billion (-4.3% YoY) vs. $94.8 billion in FY2Q23
Net income = $23.6 billion (-2.16% YoY) vs. $24.1 billion in FY2Q23
Operating income = $27.9 billion (-1.5% YoY) vs. $28.3 billion in FY2Q23
Earnings per share = $1.53 (0% YoY) vs. $1.53 in FY2Q23
Illustration 1.01
The illustration above shows Apple's price action in the aftermarket, with shares soaring more than 7%.
Additional information
Operating costs rose 5.2% YoY to $14.3 billion.
iPhone sales fell 10.4% YoY.
Mac sales increased nearly 4% YoY.
iPad sales went down 16.6% YoY.
Sales in the wearable, home, and accessories category dropped 9.6% YoY.
Revenue from services grew by 14.1%
The company’s liabilities declined by about 9.4% YoY.
Apple increased its dividend to $0.25 per share.
Forward guidance
Apple did not provide any forward guidance. However, its CEO, Tim Cook, said the company plans to announce in regard to artificial intelligence. On top of that, he expressed optimism about the company’s operations in China.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor or any other entity. Therefore, your own due diligence is highly advised before entering a trade.
AAPL has IndoChina headwinds SHORTAAPL is here on a 120-minute chart in what appears to be a falling wedge pattern.
As volatility gets compressed further it could break down or break out with a bais for
the latter. I believe that the rise of generic phones in China and Inda with comparable
cameras and other functionality has impacted AAPL as had the rising prices of its
flagship products. Time will tell how this plays out. In the meanwhile, I will consider that
AAPL stays in its wedge and play the top trendline with a short and go long from the
bottom. At present , with price at the upper resistance trendline, I will add to my short
position. I see AAPL staying underneath the 0.5 Fib retracement level of the uptrend for
the time being.
Apple ($AAPL) Set to Report its Second-Quarter ResultsApple is ( NASDAQ:AAPL ) facing low expectations as it prepares to report its second-quarter results, with its reputation as a market leader being refuted this year. The company's reputation for outperforming in all market conditions has been refuted, as it sharply lags peers with better growth, a clearer AI narrative, and a cheaper price tag. However, there may be less room for disappointment with a lowered bar, especially with a massive buyback announcement likely. Analysts expect Apple to add another $90 billion to its repurchase program, suggesting it will follow Alphabet Inc. and Meta Platforms Inc. among the big-tech names that have announced huge buybacks this year. Apple ( NASDAQ:AAPL ) has already spent more than $650 billion buying back its own stock since 2012.
The buybacks have been a way for Apple ( NASDAQ:AAPL ) to support earnings, with revenue expected to fall almost 5% this quarter, representing its weakest rate in more than a year. Overall tech revenue is expected to rise 8.6% this quarter, according to Bloomberg Intelligence. The growth trends largely reflect the Greater China region, which accounted for nearly 19% of Apple's 2023 revenue. The stock is down 10% this year, compared with a gain of 3.9% for the Nasdaq 100 Index.
Analysts are largely cautious, with the consensus for Apple's full-year revenue dropping 2.2% over the past quarter and the view for its net earnings being down 0.8%. Fewer than 60% of the analysts tracked by Bloomberg recommend buying the stock, a ratio well below that of another megacap tech. Google paid Apple $20 billion in 2022 alone to be the default search engine on its Safari web browser, according to unredacted documents that surfaced on the eve of closing arguments Thursday that will wrap up the Justice Department's landmark antitrust trial.
APPLE This is why you should not miss this buy opportunity.Apple (AAPL) dived by -18% from the December 14 2023 High and following yet another rejection on its 1D MA50 this week, many turned increasingly skeptical over the stocks future. On this chart however, we examine Apple's ratio against Nasdaq (NDX) and gives a very clear answer.
As you can see, the ratio is about to form a Death Cross on the 1W time-frame, with the price attempting a rebound after having been hammered below the 1W MA200 (orange trend-line). In the past 11 years, every time the ratio was below its 1W MA200 (green arc) and on a 1W Death Cross in particular, that was the market bottom and Apple largely outperformed the rest of the index.
In fact the minimum it rose by until the next large correction was +53.54% and the maximum +95.31%. In 1W RSI terms, this bottom is very similar to January 2013, when the RSI also got extremely oversold at 20.00.
Bottom-line: Apple is most likely expected to outperform the index in the coming years, thus presenting a very rare long-term buy opportunity.
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AAPL:A Bearish Reversal Looms with Potential Downside of -9.22%?Hi Realistic Traders, let's delve into the technical analysis of NASDAQ:AAPL !
On the Daily timeframe, we've spotted a significant double-top pattern , suggesting a potential bearish reversal if the neckline is breached. Also, the price has fallen below the EMA200 line, indicating ongoing selling pressure. Despite two attempts, it hasn't managed to break above the EMA200 line, indicating strong resistance. This resistance could lead to a potential downturn in Apple's stock. Recently, there was a breakout below the neckline, confirming the bearish trend. Furthermore, MACD is showing bearish divergence in the negative zone, supporting the idea of a downward movement towards our target at 149.55."
It is essential to note that the analysis will no longer hold validity once the target/resistance area is reached.
Disclaimer:
"Please note that this analysis is solely for educational purposes and should not be considered a recommendation to take a long or short position on AAPL."
Please support the channel by engaging with the content, using the rocket button, and sharing your opinions in the comments below
EU's Digital Dominance Crackdown: Apple's iPad Added to RadarThe European Union (EU) has extended its regulatory reach to encompass Apple Inc.'s iconic iPad. This expansion, under the auspices of the Digital Markets Act (DMA), underscores the EU's commitment to fostering fair competition and curbing potential monopolistic tendencies among Big Tech giants.
The decision marks a significant juncture for Cupertino-based Apple, as it faces a new set of stringent rules aimed at ensuring a level playing field in the digital arena. The DMA, which recently came into full force, targets six tech behemoths deemed as digital "gatekeepers," including Apple ( NASDAQ:AAPL ), Meta Platforms Inc., Alphabet Inc.'s Google, Amazon.com Inc., Microsoft Corp., and ByteDance Ltd., the parent company of TikTok.
Under the DMA's purview, designated firms are compelled to adhere to a series of preemptive measures aimed at thwarting anti-competitive practices before they can take root. Notably, Apple ( NASDAQ:AAPL ) now has a six-month window to align its iPad ecosystem with the regulatory framework outlined by the EU. This entails a gamut of obligations and prohibitions, including allowing users to download apps from sources beyond Apple's ecosystem and granting them the ability to uninstall preloaded applications.
Margrethe Vestager, the EU's Competition Commissioner, emphasized the rationale behind bringing iPadOS under the DMA's umbrella, citing its pivotal role as a gateway for numerous companies to reach their customers. She underscored the EU's commitment to preserving fairness and competition in the digital marketplace, signaling a proactive stance against potential monopolistic behaviors.
Apple's ( NASDAQ:AAPL ) response to the regulatory encroachment reflects a delicate balancing act between catering to European consumers' needs and addressing the new privacy and data security risks posed by the DMA. The company remains steadfast in its commitment to delivering value to European users while navigating the evolving regulatory landscape.
The inclusion of the iPad in the DMA's ambit signifies a broader trend of regulatory scrutiny confronting tech giants worldwide. With regulators increasingly scrutinizing digital platforms' market dominance and their impact on competition and innovation, the tech industry faces a paradigm shift in regulatory oversight.
The ramifications of the EU's digital dominance crackdown extend far beyond Apple ( NASDAQ:AAPL ), reverberating across the tech ecosystem and prompting industry-wide reflection on business practices and market dynamics. As regulatory pressures mount, tech companies are compelled to reassess their strategies and business models to navigate the evolving regulatory terrain while maintaining their competitive edge.
In this era of heightened regulatory scrutiny, the EU's move to bring the iPad under the DMA's purview underscores the imperative of fostering fair competition and innovation in the digital marketplace.
Despite the regulatory scrutiny, Apple Inc. ( NASDAQ:AAPL ) stock is up 4% trading with a moderate Relative Strength Index (RSI) of 58.85 indicating further room for growth.
APPLE Technical Analysis! SELL!
My dear followers,
I analysed this chart on APPLE and concluded the following:
The market is trading on 169.28 pivot level.
Bias - Bearish
Technical Indicators: Both Super Trend & Pivot HL indicate a highly probable Bearish continuation.
Target - 167.62
About Used Indicators:
A super-trend indicator is plotted on either above or below the closing price to signal a buy or sell. The indicator changes color, based on whether or not you should be buying. If the super-trend indicator moves below the closing price, the indicator turns green, and it signals an entry point or points to buy.
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WISH YOU ALL LUCK
APPLE The Target Is UP! BUY!
My dear friends,
Please, find my technical outlook for APPLE below:
The price is coiling around a solid key level - 164.94
Bias - Bullish
Technical Indicators: Pivot Points Low anticipates a potential price reversal.
Super trend shows a clear buy, giving a perfect indicators' convergence.
Goal - 170.59
Safe Stop Loss - 161.57
About Used Indicators:
The pivot point itself is simply the average of the high, low and closing prices from the previous trading day.
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WISH YOU ALL LUCK
Weekly Outlook - 27/04/2024Last week brought huge earnings reports for some of the big US tech companies, with mixed reactions. We saw META lose 7% during the previous week after a great earnings report, and Alphabet (GOOG) soaring 10% on Friday. Next week, we will see earnings from Amazon (Tuesday) and Apple on Thursday as well as other large cap earnings reports. Will the market be pricing in higher earnings off the back of last week's form?
First, let's observe the broader markets...
S&P 500
SPX looks to have created a bearish break of structure. I am anticipating a retrace into the pattern, at approximately $5,200 (around a 2% up move), at which point, the price may look to reverse to the downside. We can find confirmation for this on the RSI, where the momentum, which was holding at ~40, was broken and bulls are clearly losing power for the time being.
DXY
The DXY (or dollar index) is inversely correlated to the S&P 500. To put it simply: dollar goes up; stocks go down, and vice versa.
In this image, you can see that the DXY has broken down from the highs and is looking to retrace. We have already seen a throwback into the consolidation pattern, and are now looking for the dollar to retrace...thereby adding confluence to the fact that stocks will see a rise in the early days of the week
AAPL
For AAPL, it is simple. A break below $165.67 would cause a major impulse to the downside, targetting ~$149.50. However, with current momentum, what I believe is more likely is a retrace to between $186 and $191 (an increase of nearly 10% and 13% respectively). For this to happen, a clean break of the swing high at 178.36 would need to occur.
That's all for this market outlook. In conclusion, I am looking for a declining dollar and rising stocks in the early part of next week.
Let me know what you think.
Cheers
Apple Explores Partnership with OpenAI for iPhone Generative AIIn a bid to elevate user experience to unprecedented heights, Apple Inc. ( NASDAQ:AAPL ) is reportedly in talks with OpenAI to integrate the startup's cutting-edge generative AI technology into its forthcoming iPhone features. This potential collaboration marks a significant stride towards imbuing smartphones with human-like interaction capabilities, reshaping the landscape of mobile technology.
Empowering iOS 18:
According to reports from Bloomberg News, Apple ( NASDAQ:AAPL ) and OpenAI have reignited discussions, delving into the intricacies of a potential partnership that could see OpenAI's innovative AI features seamlessly integrated into the fabric of iOS 18, the next iteration of Apple's flagship operating system. The envisaged features promise to revolutionize user engagement, offering personalized and contextually relevant interactions that mimic human conversation.
A Strategic Evolution:
As the tech giant explores avenues to augment its product ecosystem, the alignment with OpenAI underscores Apple's commitment to fostering innovation and enhancing user satisfaction. By harnessing the prowess of generative AI, Apple ( NASDAQ:AAPL ) seeks to redefine the boundaries of smartphone functionality, propelling the iPhone into a realm where intuitive and empathetic interactions are not just conceivable but imminent.
The Quest for Perfection:
While Apple ( NASDAQ:AAPL ) has been deliberate in its approach to adopting generative AI, the renewed discussions signify a pivotal moment in the company's evolution. With competitors like Microsoft and Google already integrating similar capabilities into their products, Apple's foray into generative AI signals its determination to stay abreast of technological advancements and deliver unparalleled experiences to its users.
Exploring All Avenues:
Amidst the negotiations with OpenAI, Apple remains open to exploring alternative partnerships, including the possibility of licensing Google's Gemini chatbot. The tech titan's cautious approach underscores its commitment to meticulous deliberation, ensuring that the selected partners align with its vision of innovation and excellence.
Shaping the Future of Interaction:
As the tech landscape continues to evolve, the potential collaboration between Apple and OpenAI holds immense promise for the future of human-computer interaction. By infusing iPhones with generative AI capabilities, Apple ( NASDAQ:AAPL ) aims to transcend the confines of conventional technology, ushering in an era where devices not only respond to user commands but also anticipate and empathize with their needs.
AAPL | InformativeNASDAQ:AAPL
It has formed a Head and Shoulders pattern on the 4-hour chart, and it is hovering around the bullish trendline from the previous year. The direction it takes is uncertain at this point. However, based on the bearish pattern, it is expected to move downwards. It's worth noting that many Head and Shoulders patterns have failed to materialize, especially on large caps and indices that are heavily anticipated by the market.
AAPL in Risk of Bear MarketApple is having a tough period with weakening China demand, lack of growth and innovation, AI lag, regulatory challenges that threaten its lucrative walled garden business model and other headwinds. These challenges weigh on the stock, which shed more than 10% in the first quarter. Along with Tesla, they were the only stocks to fall, among the Magnificent Seven.
The situation deteriorated further in April, as AAPL hit the lowest levels in a year and is now in risk of a bear market . Moves below $160 would mean losses of 20% and more from the December record high, which is generally viewed as the threshold for a bear market.
On the other hand Apple is still one of the most valuable companies in the world and investors are unlikely to give up on it and there are reasons for optimism. iPhone sales have shown resilience and the smartphone market is poised for a rebound. Its CEO appears determined to not let China fall, but also looks to India, which has significant untapped potential. Apple also launched the Vision Pro AR headset this year, looking for an early entry to a nascent market, while AI progress could be showcased soon.
AAPL is having a good week and although we could see further rebound, the upside contains multiple roadblocks. Closes above the EMA200 would be required for the downside momentum to halt.
The stocks trajectory will be influenced by the upcoming earnings report, which is due on May 2. Top and bottom lines, China & India performance, guidance and AI progress, will be some of the focal points.
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Past Performance is not an indicator of future results.
APPLE Bouncing off extremely strong Support Cluster.Apple (AAPL) completed yesterday 3 straight green 1D candles, the longest such bullish streak in 3 months (since January 25). The rebound has been initiated inside the Lower Highs Zone that started after Apple's former All Time High (ATH) on January 04 2022.
The are a lot of recurring patterns involved as well, with one being that the current Channel Down that started on the December 14 2023 High, was rejected on the Resistance Zone that the previous Channel Down also did on the July 19 2023 High. That one made a Double Bottom on the Former ATH Lower Highs Zone after a rejection marginally above the 1D MA50 (blue trend-line) before rebounding.
With the 1D RSI within a Channel Down as well since that High and having rebounded from its lowest level since February 2018, we have a very strong case for buying Apple, at least on the medium-term, targeting again the Resistance Zone's bottom at $198.00.
If it follows the pattern of the 2023 rally, we can even see it hitting the 1.382 Fibonacci extension at $211.00 or even higher by the end of the year since the pattern that on the January 03 2023 market bottom, is a Channel Up.
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AAPL Apple and the DOJ Antitrust LawsuitAfter the previous price target was reached:
Warren Buffett has been a prominent supporter of Apple (NASDAQ: AAPL) in recent years. However, there is speculation that his enthusiasm for the stock may have diminished. In the fourth quarter of 2023, Berkshire Hathaway reduced its holdings in the tech giant.
This move occurred before the U.S. Department of Justice (DOJ) announced that it, along with 16 state and district attorneys general, was suing Apple for alleged violations of antitrust laws. The question now arises: Will Buffett continue to sell off Apple stock in response to the DOJ antitrust lawsuit — and should others consider following suit?
The complaint filed by the department in the U.S. District Court for the District of New Jersey outlined various allegations against Apple, including that the company:
- Prevented the availability of iPhone apps designed to facilitate easier transitions to alternative smartphone platforms for consumers.
- Hindered the advancement of mobile cloud streaming services enabling consumers to play video games without necessitating expensive smartphone hardware purchases.
- Excluded messaging apps on iPhones that seamlessly operate across different smartphone platforms.
- Restricted the capabilities of competitors' products in comparison to the Apple Watch.
- Constrained competing digital wallets by prohibiting apps from enabling users to utilize tap-to-pay functionality.
My price Target for AAPL is now $165.