Apple (AAPL) stock last traded below $240 in late November of the previous year. Bearish sentiment is being driven by negative developments related to the company:
→ CNBC reports analysts’ concerns that the overly thin design of the new iPhone SE 4 models will hinder sales in China. They also point to a decrease in the appeal of the Apple Intelligence feature.
→ Investment firm Moffett Nathanson downgraded Apple’s rating from “Neutral” to “Sell” and lowered its target price for AAPL from $202 to $188. Analysts believe the 30% projected growth in Apple’s stock for 2024 is largely unjustified.
→ Mark Zuckerberg’s criticism of Apple, claiming the company has not innovated in a meaningful way for a long time.
As we noted on 27 December, Apple’s stock showed signs of being overbought and vulnerable to correction.
Technical analysis of the AAPL chart today shows the price has fallen to:
→ The median of the current channel (highlighted in blue);
→ The $235 level, which previously acted as resistance.
In the short term, this range between the two lines may offer support to the price. This theory is supported by the long lower wick on Friday’s candle, indicating increased buying activity.
According to TipRanks:
→ The 12-month price target for AAPL stock, according to analysts, averages $244.77;
→ Out of 29 analysts surveyed, 19 recommend buying AAPL, while 3 suggest selling.
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