Conclusion, Investment Implications, Strategy
Apple Inc. (AAPL) appears to be resuming its March advance following two months of sideways investor indecision. A sustained rise above the $114.13 area would help confirm this and target an additional 23% rise to $147.50 per share.
Analysis and Rationale
Apple Inc. (AAPL) designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. It also sells various related services. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch, and other Apple-branded and third-party accessories. It also provides AppleCare support services; cloud services store services; and operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games, and podcasts. The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. It sells and delivers third-party applications for its products through the App Store. The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers. Apple Inc. was founded in 1977 and is headquartered in Cupertino, California.
Chart 1 below plots AAPL daily since March, highlighting an emerging breakout higher from two months of sideways investor indecision. A sustained rise above the upper boundary of the indecision area, currently at $114.13, would confirm the breakout and target an additional 23% rise to $147.50 per share.
Table 1 below shows that considering the aforementioned upside target and a protective stop placed below the $114.13 area, a long entry price of $119.85 would provide a 1:4.8 risk/reward ratio (risking $1.00 to make $4.80) with an initial risk of 4.8%.
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