Apple is an American multinational technology company with headquarters in Cupertino, California. For now, it is the world’s largest technology company by revenue and market capitalization. What scenarios does its valuation currently face?
AAPL.US 1W Chart Analysis, August 29, 2023
AAPL.US – trend change or just a correction?
Fundamental analysis
Apple announced its quarterly results on August 3, 2023 (yellow vertical line). The Company posted quarterly revenue of $81.8 billion, down 1% YoY. Quarterly EPS reached $1.26, up 5% YoY, and 6% above consensus. However, the news that sales turned out to be 1% less YoY prevailed. This led to a total price decrease of 12%. Notably, sales of iPhones, the company’s most crucial product, fell during this period.
Apple’s previous earnings are marked with vertical orange lines on the chart. As seen, the price between them did not change, or more often – increased. The week with future results is marked with a dashed line. Although Apple underperformed the NASDAQ in August, the iPhone 15 planned for September may reverse the correction.
Technical analysis
An apparent change in the trend occurred in the week of the announcement of the results. A large red candle, symbolizing a 7% decline, crossed the EMA9. This brought the price to a Fibo retracement of 0.236 ($181) and occurred with a crossover on the MACD. Apple trades between the 0.382 ($170.16) and 0.236 ($181) retracement levels. This is also the area between EMA9 and EMA 50.
The arguments on the bulls’ side are that the supply could not bring the price to the 0.382 retracement or the EMA50, and the death cross hasn’t happened yet. In addition, Apple is trading just below the 0.236 retracement, perhaps forming a parabola marked in orange.
The bears’ arguments for the continuation of declines are the still valid MACD cross and a historically weak September for both the stock market and Apple.
The closing of the weekly candle should be decisive. If it breaks above the 0.236 retracement and EMA9, it should favor a move towards ATH ($198.48). Otherwise (close below the parabola), the favored direction is retracement 0.382, EMA50, and retracement 0.5 (161.42).
The information provided on this website does not, and is not intended to, constitute investment advice; instead, all information, content, and materials available on this site are for general informational purposes only.
