Apple (AAPL) shares are expected to be closely monitored in the lead-up to the highly anticipated Sept. 9 event, where the tech giant is set to unveil the iPhone 16 featuring artificial intelligence (AI) capabilities, along with new versions of the Apple Watch and AirPods. Investors are also digesting the recent announcement that Apple will be replacing long-time Chief Financial Officer (CFO) Luca Maestri with Kevan Parekh on Jan. 1, who currently serves as Apple’s vice president of financial planning and analysis.
Despite trading just 4% below their record high, Apple faces stiff competition in the smartphone market from rivals like Samsung and Google, both of whom have recently introduced devices with advanced AI integration and other high-end features. In light of this, investors are keenly watching Apple’s stock performance leading up to the iPhone 16 launch event.
**Key Technical Analysis Insights**
Following a recent correction that saw Apple shares drop by as much as 17% from their mid-July peak, buying interest emerged near the top trendline of a broad ascending triangle pattern. This chart formation typically indicates a continuation of the stock’s longer-term uptrend. Additionally, the crossing of the 50-day moving average (MA) above the 200-day MA in June resulted in a golden cross, a bullish signal pointing towards further price gains.
Despite a 16% recovery since hitting a recent low, Apple’s stock price has struggled to maintain momentum on below-average trading volume, suggesting a lack of conviction from larger market participants. Moving forward, investors should pay close attention to key price levels on Apple’s chart to gauge potential support and resistance zones.
**Lower Price Levels to Monitor**
In the event of profit-taking at current levels, Apple shares could retreat to around $218, a critical support area located just below the 50-day MA. This level aligns with a trendline connecting the stock’s peak in June and trough in July, making it a possible bounce-back point for the shares.
Further downside movement may see the stock testing the $207 level, where investors might consider buying opportunities near the breakout close from June 11. This price level also coincides with the low of a minor pullback later that month, adding to its significance as a potential support zone.
**Higher Price Levels to Watch**
On the upside, a continuation of bullish momentum could propel Apple shares towards the $233 mark, where they may encounter selling pressure as they approach several key price points just below the stock’s record high. To project a price target beyond Apple’s all-time high, investors can utilize the measuring principle by calculating the distance between the ascending triangle’s lower and upper trendlines at their widest point and adding that amount to the breakout level. For instance, adding $70 to $197 projects a target of $267 for Apple shares.
Apple’s stock price closed at $226.50 in extended trading on Monday, reflecting a marginal decline of 0.3%.
Investors should note that the opinions and analyses expressed in this article are for informational purposes only and do not constitute investment advice. Readers are encouraged to conduct their own research and consult with financial professionals before making any investment decisions.
As of the writing of this article, the author does not hold any positions in the securities mentioned above.
Conclusion
In conclusion, Apple’s stock performance leading up to the iPhone 16 launch event is expected to be closely monitored by investors, given the company’s upcoming product releases and changes in its executive team. Technical analysis indicates key price levels that investors should keep an eye on for potential support and resistance zones. With competition heating up in the smartphone market, Apple faces challenges that could impact its stock price in the near term. As always, investors are advised to conduct thorough research and seek professional guidance before making investment decisions in the ever-evolving tech sector.
