Apple stock analysis: what is the best time to buy the stock?

Apple share price analysis suggest stock may rally to a new all-time high

Apple stock analysis                                 

Apple is the most valuable company in the world with a market capitalisation of $2.2trn (£1.6trn, Є1.8trn), according to companiesmarketcap. Despite its huge size, Apple has continued to grow at an impressive pace. 

Apple reported revenue of $111.4bn (£80bn, Є93bn) in its first-quarter earnings report for fiscal 2021, a 21% growth in sales year over year. It was the first time Apple had crossed the psychological $100bn mark in revenue in a single quarter. 

The company will report its fiscal second-quarter results on April 28. Analysts anticipate another record-breaking quarter where revenues are likely to be up 32% and earnings-per-share could be up more than 50% from year-ago levels. 

The tax refunds, economic stimulus checks, and the reopening of the economy are anticipated to have boosted iPhone sales in March, according to KeyBanc Capital Markets analyst John Vinh. Similarly, the Mac and the services segment are also expected to report magnificent numbers. 

The analysts will also keenly watch the new product launch on April 20 where updates to iPad and AirPod lines are expected. For September 2022, the earnings per share forecast is $4.71. At the current price of $134, the stock trades at an estimated forward price to earnings ratio of 28 times, which is not exactly cheap. 

While the fundamentals are attractive, do the technicals also project a further rally in the stock? Let’s perform the Apple stock price analysis of the weekly chart to find out.

Apple share price technical analysis – weekly chart

The Apple stock rallied from a low of $53.15 in March 2020 to a high of $145.01 on January 25, a gain of 172 per cent within a year. The price is currently stuck inside a rising wedge pattern.

Although the 50-week SMA is rising, the 20-week EMA has flattened out, suggesting a balance between supply and demand. The negative divergence on the relative strength index (RSI) indicates the momentum is weakening.

The bulls will now try to push the price to a new all-time high and clear the hurdle of the resistance line of the wedge. If they succeed, the momentum could pick up and the stock could rally to $185.

On the other hand, if the stock turns down from the resistance line of the wedge, it could extend its stay inside the wedge for a few more weeks. The bears will gain the upper hand on a breakdown from the wedge.

The Apple stock analysis of the weekly chart shows the trend favours the bulls but is weakening. Let’s perform the Apple stock price analysis of the daily chart to determine the path of least resistance.

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Apple share price technical analysis – daily chart

The stock has formed an ascending triangle pattern on the daily chart. The 20-day EMA has turned up and the RSI has also risen close to the overbought territory, indicating the bulls are in control.

If the buyers can thrust the price above the triangle and the all-time high, the stock could pick up momentum. The pattern target of the breakout from the triangle is $176.

Contrary to this assumption, if the price turns down from the overhead resistance, it may drop to the 20-day EMA. A strong bounce off this support will suggest that the sentiment remains positive. The bulls will then make one more attempt to push the price above the overhead resistance.

This bullish move will invalidate if the bears sink the price below the moving averages. The trend could turn in favour of the bears on a break below the triangle. 

Apple stock: buy or sell?

The Apple stock price analysis shows the bulls have an advantage in the short term. However, the stock is likely to face stiff resistance in the $138 to $149.01 zone. Therefore, traders may wait for the price to break above $150 and then consider initiating long positions.

Another buying opportunity could arise if the price dips and rebounds off the 20-day EMA. The stop-loss for this trade could be kept just below the trendline of the triangle. 

 

Trade Apple – Apple share price

Apple Inc
Daily change
142.9
Low: 142.05
High: 147.49

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