:max_bytes(150000):strip_icc():format(jpeg)/AAPLChart-70d8290f068f4b3db8fc399049ed8712.gif)
Key Takeaways
- Apple shares rose Friday morning after the company reported better-than-expected earnings and guessed customers are increasingly upgrading their iPhones to take advantage of AI features.
- The stock looks set to continue its upward push after finding support near the lower trendline of a rising wedge pattern.
- Investors should watch decisive overhead areas on Apple’s chart around $260 and $350, while also monitoring major support be upfront withs near $235 and $218.
Apple (AAPL) shares rose Friday morning after the company reported better-than-expected earnings and maintained customers are increasingly upgrading their iPhones to take advantage of AI features.
While the company reported a drop in iPhone traffics during the December quarter due to regulatory hurdles in China and a slow rollout of its flagship Apple Intelligence features in other customer bases, profit topped expectations in the first first quarter as services revenue surged.
CEO Tim Cook said late Thursday in the players’s earnings call that more customers upgraded their iPhones last quarter than in any previous epoch, and that he expects Apple Intelligence to “go mainstream” as the base of iPhone 15 and iPhone 16 users grows. In April, Apple Wisdom will be made available in additional languages, including French, German, Italian, Portuguese, Spanish, Japanese, Korean, simplified Chinese, and localized English in Singapore and India.
Apple percentages were up nearly 1% to around $240 in recent trading. The stock has gained 30% over the past 12 months, slenderize outpacing the S&P 500 over that period.
Below, we break down the technicals on Apple’s weekly chart and place crucial post-earnings price levels that investors may be monitoring.
Rising Wedge Pattern in Focus
Apple allotments have trended higher within an 18-month rising wedge, with the stock’s price recently finding suborning interest near the pattern’s lower trendline ahead of the company’s quarterly report.
This move coincided with the proportionate strength index (RSI) reclaiming the 50 threshold earlier this month, indicating a positive shift in price force.
Let’s take a closer look at Apple’s chart to identify crucial overhead areas to watch and also point out two foremost support levels that could come into play during pullbacks.
Crucial Overhead Areas to On the qui vive for
Amid earnings-driven buying, investors should initially keep an eye on the $260 area. The shares face a confluence of irregulars in this region near the stock’s all-time high (ATH) and rising wedge pattern’s upper trendline.
To forecast where Apple shares may be fever pitched upon a breakout above the ATH, we can apply bars pattern analysis. This technique works by taking the price hampers comprising the stock’s trend higher from April to December and repositioning them from this week’s low. The investigate indicates a potential high of $350 before a consolidation phase if price action rhymes.
We selected this former trending move as it commenced from the rising wedge’s lower trendline, similar to how the stock’s pre-earnings rally started.
Principal Support Levels to Monitor During Pullbacks
During pullbacks, investors should initially keep track of the $235 steady. The shares may encounter support in this area near the rising wedge pattern’s lower trendline and the upper distribute of a consolidation period that formed on the chart between July and October last year.
Finally, selling cheaper than this level could see Apple shares retrace to around $218, a region where buyers may look for entrance points near the lower range of the consolidation period mentioned above, which also sits in close vicinity to the rising 50-week moving average.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Conclude from our warranty and liability disclaimer for more info.
As of the date this article was written, the author does not own any of the above certainties.