Essential Insights
- The share price of Apple experienced an increase on Friday morning after the firm released an earnings report that exceeded market forecasts, indicating a rise in users upgrading their iPhones to leverage AI functionalities.
- The stock found support near the downward trendline of a rising wedge formation, implying it might maintain its upward movement.
- Investors should monitor significant resistance points around $260 and $350 on Apple’s graph, while also keeping an eye on crucial support zones near $235 and $218.
Apple (AAPL) witnessed its share price rise on Friday morning after the corporation disclosed earnings that surpassed market forecasts, showcasing an increasing number of users enhancing their iPhones to take advantage of AI features. Three Justifications Why the Cost of Shiba Inu Coin Might Ascend by 60%
Even with a drop in iPhone sales due to regulatory challenges in China and a gradual introduction of its premier smart features in other regions, the company’s profits for the first quarter exceeded expectations, with notable growth in service revenue.
During the earnings call, CEO Tim Cook mentioned that a record number of customers upgraded their iPhones in the previous quarter, and he expects that as the user base for iPhone 15 and iPhone 16 grows, Apple’s smart technology will slowly become commonplace. By April, Apple intends to provide its smart features in additional languages, including French, German, Italian, Portuguese, Spanish, Japanese, Korean, Simplified Chinese, as well as localized English for Singapore and India.
In recent trading, Apple’s shares climbed nearly 1%, reaching approximately $240. Over the last year, the stock has risen by 30%, slightly outperforming the S&P 500 index during the same timeframe.
Next, we will examine the technical indicators on Apple’s weekly chart and pinpoint key price levels that investors may concentrate on following the earnings announcement. Whats Fueling the Rise in XRP, LINK, BONK, Jasmy, and Other Altcoins?
Attention on Rising Wedge Formation
Over the last 18 months, Apple’s shares have exhibited an upward wedge formation, with recent purchasing interest surfacing near the descending trend line of this formation, coinciding with the company’s forthcoming quarterly earnings announcement.
This price action corresponds with the relative strength index (RSI) surpassing the 50 mark earlier this month, suggesting a favorable change in price momentum.
Let’s examine Apple’s chart more closely to pinpoint significant resistance zones that warrant attention and emphasize two primary support levels that may come into play during a retracement.
**Significant Resistance Zones to Observe**
Throughout the earnings-induced buying phase, investors should initially concentrate on the $260 area. The stock encounters several resistances in this zone, near its historical peak (ATH) and the ascending trend line of the upward wedge formation.
To project the stock’s trajectory after surpassing the historical peak, we can utilize bar chart pattern analysis. This method entails adjusting the price bars from April to December at this week’s low. Studies suggest that if the price trend remains steady, potential peaks could approach $350 before transitioning into a consolidation period.
We choose this prior upward movement as it originated from the descending trend line of the ascending wedge, akin to the stock’s rebound prior to the earnings announcement.
**Primary Support Levels to Watch During Retracements**
During a retracement, investors should initially focus on the $235 mark. The stock price may discover support in this vicinity, near the descending trend line of the ascending wedge and the upper boundary established during the consolidation phase between July and October of the previous year.
Ultimately, if the stock price dips below this mark, Apple’s shares may decline to approximately $218, a zone that could entice buyers seeking entry points near the lower boundary of the previously mentioned consolidation phase, which also closely aligns with the ascending 50-week moving average.
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At the moment this piece was composed, the writer does not possess any of the previously mentioned securities.
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