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Apple Inc. Technical Analysis: Stock Closes at $186.88, Showing Bullish Momentum

StockInvest.us, 4 weeks ago

Apple Technical Analysis

Apple Inc. (NASDAQ: AAPL) closed at $186.88 on May 23, 2024, representing a drop of 2.11% or $4.02 from the previous trading day. The stock's trading range for the day was between $186.63 and $191. Over the last year, AAPL's price has oscillated between a low of $164.08 and a high of $199.62. Current technical indicators show the RSI14 at 58, slightly below the overbought threshold, suggesting that the stock is neither overbought nor oversold.

The 50-day moving average of $175.58 and the 200-day moving average of $180.92 indicate continued bullish momentum, with the shorter-term moving average remaining above the long-term one. The MACD of 7.47 supports the bullish stance. However, with an ATR of 1.75, AAPL displays moderate volatility.

Today's support and resistance levels are $183.38 and $187.43, respectively, hinting at a slight downside risk but also potential stabilization around current levels.

Fundamental Analysis

Apple Inc.'s market capitalization stands at $2.92 trillion, making it the largest publicly traded company by market value. The stock has a P/E ratio of 29.6, which is relatively high but can be justified given Apple’s historical performance and growth potential. The company’s EPS of $6.43 shows solid profitability.

Analyst sentiment is leaning positive, with Wedbush recently raising the price target to $275 from $250 on expectations of an AI-driven "iPhone 16 supercycle" and stabilization in iPhone demand. Out of 36 analysts, 25 rate it as a 'Buy', 9 as 'Hold', and 2 as 'Sell'. This consensus indicates broad optimism about Apple's future performance.

Apple The company's earnings announcement scheduled for August 1, 2024, will be a key driver of short-term stock price movement. The intrinsic value as per Discounted Cash Flow (DCF) analysis is approximately $133.94, significantly lower than the current market price, suggesting the stock may be overvalued.

Upcoming Predictions

For the next trading day, May 24, 2024, the stock may experience moderate volatility given recent bullish sentiments, especially in light of favorable analyst updates and increasing interest in AI opportunities. The support around $183.38 could be critical to watch if bearish trends continue, while resistance at $187.43 is likely pivotal for any short-term rebound.

Over the coming week, positive news pertaining to AI developments and stabilization in iPhone demand could drive AAPL's stock higher, potentially testing the upper resistance levels around its yearly high.

Intrinsic Value and Long-Term Investment Potential

The current DCF value of $133.94 suggests the stock is trading above its intrinsic value, indicating a potential overvaluation. However, for long-term investors, Apple's robust fundamentals, innovation pipeline, and market leadership position offer substantial growth opportunities. The company's forward guidance, particularly regarding AI and China market recovery, supports a bullish long-term outlook.

Overall Evaluation: Hold

Despite the recent price dip, Apple's strong market position and positive analyst outlooks suggest it remains a stable investment. Therefore, AAPL can be categorized as a 'Hold' candidate, balancing its high valuation with significant future growth prospects.

Check full Apple forecast and analysis here.