Over the past year, the stock price of technology giant Apple (NASDAQ: AAPL) has struggled to achieve a significant breakout, with investors hoping the company might catch up to peers driving the artificial intelligence (AI) space.
Notably, a key target for AAPL is the $250 mark, which investors believe could drive the equity to new heights. As of 2024, the stock has gained over 23%, trading at $229 at press time. This price level reflects a daily loss of less than 0.5%.
AAPL YTD stock price chart. Source: Finbold
APPL stock’s buying opportunity
Looking forward, stock trading expert Naranj Capital noted in a TradingView post on August 29 that the stock could be on the verge of a significant breakout. The expert’s evaluation suggested that Apple is approaching a critical juncture that could give investors a favorable buying opportunity.
The analysis highlighted that Apple’s stock has undergone an extended period of consolidation, forming several bullish chart patterns, notably the double bottom and rounding bottom formations. These patterns often indicate a potential upward trend, and Apple’s stock appears to be following this trajectory.
APPL stock price analysis chart. Source: TradingView
After breaking above the neckline of the rounding bottom pattern, Apple’s stock surged to an all-time high near the $237 level. However, it has since retraced approximately 17%-18%, returning to its support level. Despite this pullback, the expert noted that the stock has rebounded robustly, suggesting renewed momentum.
According to Naranj Capital, the stock is approaching its resistance zone, with expectations building for a significant breakout. The analysis noted that the optimal buying opportunity for investors will be just above the $240 level. If Apple’s stock can surpass this resistance, it could signal substantial upward movement, making it a “great buy” for those looking to capitalize on future gains.
APPL’s key fundamentals
Overall, attaining this level could elevate Apple’s stock, considering several factors have weighed it down. Notably, the company has faced economic challenges such as rising inflation and fears of a recession. Inflationary pressures have led to reduced consumer spending on products like iPhones.
Additionally, Apple’s stock has seen significant capital outflows from notable institutions. For example, Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) has offloaded over 50% of its stake in AAPL.
However, the upcoming Apple event and product reveal on September 9 could have a silver lining. If the event generates significant hype, it could spark investor interest and drive the stock higher.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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