Apple’s (AAPL) stock has rallied by nearly 20% since its Jan. 3 lows. Now the technical chart suggests that the stock can continue to recover to as high as $182. The company delivered first quarter results that were in line with its lowered guidance. However, more important was that fiscal second quarter revenue guidance was only 3.5% below analysts’ consensus estimates, not the disaster the stock was indicating.
On Jan. 16, I wrote an article noting that Apple’s stock was witnessing bullish momentum due to a bullish chart and options activity. Since that time, the stock has risen by 10%.
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Now the chart suggests the stock continues to rise to as high as $182, an increase of an additional 7% from the current price of roughly $170 on Feb. 4. The chart shows that the stock has broken above a critical level of technical resistance at $164 and is now heading toward its next level of technical resistance at $182.
Additionally, the relative strength index has broken out of a vicious downtrend at the end of 2018. Now the RSI is trending sharply higher and is currently around 60. It would have to rise to 70 or higher before being considered overbought. It too would suggest that the stock has further to increase.
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The company results were strong outside of China. The Americas saw robust growth in the quarter, rising 5% to $36.9 billion versus last year. Revenue in Japan and Europe fell 4.5% and 3%, respectively. However, China revenue fell a stunning 27%.
When digging a bit further into those results, we find that it was only the iPhone that saw revenue contract in the quarter, falling 15.5% to $51.9 billion from $61.5 billion every other segment of revenue grew. Wearables had the largest growth rising 33% to $7.3 billion and is now just a hair behind Mac in sales of $7.4 billion. Wearables could be the company’s third-largest business segment by the end of the second quarter if its current pace of growth continues.
Data by YCharts
Source:https://seekingalpha.com/article/4237884-apples-rally-may-starting
Have a wonderful day and I hope this helps.
