Apple's Upcoming Events and Changes
Apple shares are drawing significant attention as the company prepares for the much-anticipated iPhone 16 launch on September 9. This event is expected to showcase not only the new smartphone with AI capability but also updated models of the Apple Watch and AirPods. Additionally, in a strategic shift, Apple announced that its long-serving CFO Luca Maestri will be succeeded by Kevan Parekh, the current Vice President of Financial Planning and Analysis, effective January 1.
Current Market Context
Despite trading just 4% below its all-time high, Apple faces increasing competition from Samsung and Google's Alphabet, both of which recently launched devices with AI integration. This competitive landscape underscores the importance of Apple's upcoming product unveilings.
Technical Analysis: Ascending Triangle Pattern
Following a record high mid-July, Apple shares corrected downward by 17%, later finding buying interest on the top trendline of an ascending triangle. This chart pattern suggests a potential continuation of the stock's long-term uptrend. A golden cross in June, where the 50-day moving average (MA) crossed above the 200-day MA, further supports a bullish outlook.
Although Apple shares have rebounded by about 16% from their low this month, reclaiming the 50-day MA, the recovery has been on below-average volume, indicating some hesitance from larger investors.
Key Price Levels to Monitor
Lower Levels
At the current levels, profit-taking might pull Apple stocks back to around $218, where they could find support near a trendline linking the June peak and July trough. A further dip might test the $207 level, a significant point that aligns with prior breakout and pullback zones, offering potential buy-the-dip opportunities.
Higher Levels
Should bullish momentum continue, Apple shares could climb to $233, a critical resistance area just below the all-time high. By applying the measuring principle to the ascending triangle, a potential price target of $267 is projected, calculated by adding the triangle's height (from $197) to the breakout point.
In Monday's extended trading, Apple shares slipped by 0.3% to $226.50. As the iPhone 16 launch approaches, these price levels will be crucial for investors looking to capitalize on potential movements in Apple's stock price.
