Apple Stock: Technical Analysis Insights


Apple’s stock fell again in Tuesday trading, prompting investors to question when the iPhone maker’s shares will hit bottom.

Market Performance In the midst of early trading, Apple’s stock plummeted by 2.7%, while the S&P 500 and Nasdaq Composite experienced less dramatic declines of about 0.5% and 1.1% respectively. If the shares continue to decrease by the end of Tuesday, it would mark Apple’s fifth consecutive drop, with seven declines out of the last eight trading sessions.

Year-to-Date Performance As of early trading on Tuesday, shares were down approximately 11% year to date, lagging behind the Nasdaq by about 18 percentage points. The recent performance has left Apple shareholders concerned about the future.

Technical Analysis Insight According to Fairlead Strategies’ founder and market technician, Katie Stockton, Apple has breached support levels near $179 to $180, indicating a bearish short-term trend. Support levels represent points where investors view a stock as attractive enough to purchase shares following a decline.

Future Projections Stockton warns that if Apple were to drop to the $170 level, it would signal a more significant setback for the stock. She also identifies a secondary support level at approximately $161. While she refrains from making fundamental judgments on Apple’s AI endeavors or iPhone sales, Stockton relies on stock chart analysis to gauge short and medium-term potential. Stock charts offer valuable insights into investor sentiment shifts and key price points that have influenced past decisions.

Key Support and Price Levels for Apple Stock

The $160 level stands out as a crucial point to monitor for investors interested in Apple stock. Expert analysis from CappThesis founder Frank Cappelleri suggests that there is solid support for the stock around $165, mirroring insights from Stockton. However, below this critical level, further downside potential looms.

Expert Insight on Apple’s Technical Indicators

In a detailed analysis, John Roque, senior managing director and head of technical strategy at 22V Research, highlighted concerning signs on Apple’s stock chart back in January. His subsequent bearish outlook shared in late February raised alarms for investors.

Roque’s observations painted a bearish picture compared to the S&P 500’s all-time highs. He emphasized that Apple was trading at a one-year relative low, approaching levels last seen in August 2020. Should the stock dip below $165, Roque predicts a potential slide to $130, reflecting levels seen in 2021.

Analysts’ Price Targets and Growth Expectations

Looking ahead, Wall Street analysts hold an average price target of around $200 for Apple shares, projecting an uptick of approximately 18% from current levels. A year ago, the average price target hovered around $170, marking a 10% increase from the $155 trading price at that time.

In summary, key support levels, technical analysis, and price targets collectively shape the narrative surrounding Apple’s stock performance. Investors are advised to stay informed and vigilant in navigating potential market fluctuations.

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