Apple Inc (NASDAQ:AAPL) Shares are trading higher on Monday. The company announced a new AirTag and received positive coverage from analysts.
What Drives Apple Stock to Start the Week?
JPMorgan analyst Samik Chatterjee maintained an Overweight rating on Apple and raised the price target to $315 from $305 on Monday ahead of this week’s earnings results. Meanwhile, Jefferies analyst Edison Lee maintained a Hold rating on shares and lowered the target to $276.47 from $283.36.
Apple is preparing to report its fiscal first-quarter results after the market closes on Thursday, and Wall Street is expecting another strong performance. Analysts expect earnings of $2.66 per share and revenue of about $138.07 billion, compared to $2.40 per share and $124.30 billion in the previous quarter.
The company has exceeded expectations for both revenue and profit for several quarters in a row Benzinga Pro.
In product news, Apple also has introduced a new generation of AirTag. The updated tracker has greater localization range thanks to the company’s second-generation Ultra Wideband chip, plus a redesigned internal layout that makes the speaker 50% louder. Precision Finding now works up to 50% further away, making it easier to locate lost items.
Is Apple Stock Ready for a Recovery?
Apple is currently showing a bearish technical situation, with the price below the major moving averages. Specifically, Apple’s stock is 2.5% below its 20-day SMA, 5.5% below its 50-day SMA, and 2.5% below its 100-day SMA, indicating that the company is struggling to gain upside momentum but is looking to buck that trend on Monday.
The RSI currently stands at 21.82, indicating that Apple is in oversold territory, suggesting there is potential for a strong recovery. On the other hand, the MACD is below the signal line, indicating bearish pressure on Apple stock. This suggests that the downward momentum could continue unless there is a significant shift in buying interest.
The main support is at $244.00 while the resistance is at $277.50. As the price approaches the support level, traders should look for a possible rebound; However, a break down could indicate further downtrend, while a move above resistance could indicate a trend reversal.
Over the past twelve months, Apple shares are up 10.95%, showing that despite recent problems, the longer-term trend remains positive. This longer-term performance indicates that there may still be underlying strength, but traders should consider current technical indicators.
AAPL Price Action: Apple shares were up 2.97% to $255.39 at the time of publication on Monday, according to Benzinga Pro.
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