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Trends & Analysis
News

US dollar surges to 7-week high on NFP data

News

Shares of Levi Strauss tumble amid weak sales

News

Crude oil breaches $70 amid geopolitical concerns

News

Will silver soar to $35?

News

Nike’s shares slide despite earnings beat

News

GBP/USD holds close to multi-year highs

Asset Watch

Does a bad Apple make for a good investment?

Thursday, April 25, 2024

It’s been mostly bumps and bruises for Apple in 2024, as the iPhone maker struggles with saturated markets and foreign competition.
However, fundamental catalysts are creating a healthier outlook. Bank of America analyst Wamsi Mohan has a $225 price target and said investors should make a move if Apple slumps after its May 2 earnings release. He wrote:
“The company’s “rich catalyst path with defensive cash flows makes AAPL a top pick for 2024. We see catalysts including re-upping the capital return at earnings (May), Gen AI announcements at WWDC (June), the launch of new iPhones in the fall (iPhone 16), and reacceleration in gross profit dollar growth each quarter.”

With several bullish developments scheduled for the months ahead, Apple could outperform its Big Tech counterparts in the back half of 2024.
To play it, you should monitor Apple’s 100-week moving average. The key level provided support in June 2019 and during the COVID-19 sell-off in March 2020. And while plenty of technical damage has occurred on the daily chart, the long-term uptrend remains intact from a weekly perspective.
If Apple does struggle on May 2, the $157 area marks the highs set in September 2021, October 2022, and January 2023. Similarly, the 200-week MA is not that far behind near $153. Otherwise, buying any weakness in the days ahead could prove fruitful for the Apple bulls.
So, could Apple blossom in H2 2024, or does the risk still outweigh the reward?


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