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Category: Apple (APPL) and Technical Analysis
Date: 20 July 2020 Stock price of APPL: $385.31 With Apple's stock price having increased by 236% over the last 5 years, the question is where is the stock of Apple Inc heading? And at which price is the stock of Apple (APPL) likely to find resistance and support at?

The pivot point of APPL is very close to its 30 day moving average. If APPL stock is to increase it will find resistance at the following three resistance levels:
 Resistance 3: $419.14
 Resistance 2: $406.53
 Resistance 1: $395.10"
More About Apple Inc (APPL)
Apple is one of the worlds biggest smartphone and related accessories makers with the group manufacturing the iPhone, iPad, Macbook (laptops for those that don't know), Apple Watch and other related products and services. The group is starting to focus more and more on their services offering such as cloud services for their device users and services such as iTunes.
Apple sales by product type and category for the 2nd quarter of 2020:
Apple sales by product type and category for the 2nd quarter of 2020:
 iPhone $28.962 billon (down 6.7% from $31.051billion for the same quarter of the previous year)
 Mac: $5.351 billion (down 2.9% from $5.513 billion for the same quarter of the previous year)
 iPad: $4.368 billion (down 10.3% from $4.872 billion for the same quarter of the previous year)
 Wearables, Home and Accessories: $6.284 billion (up 22.5% from $5.129 billion for the same quarter of the previous year)
 Services: $13.348 billion (up 16.6% from $11.450 billion for the same quarter of the previous year)
Where is Apple Inc (APPL) stock heading? Fundamental or technical analysis
The million dollar question for any investor/trader is always where is the stock price heading? Must I wait before I buy or will I miss out if I dont buy now. Now if there was a clear cut answer to this question ever single person investing or trading would be filthy rich. While it is hard to say definitively when a stock price would be going up or down, or if a stock is currently over or undervalued there are certain queues that gives investors and traders an idea of what to expect. When looking at whether a stock is over or undervalued on can use fundamental analysis or technical analysis.
Fundamental analysis focuses on the financials of a firm to determine a value of stock, while technical analysis uses statistical techniques (such as fibonacci and moving averages and pivot points in order to determine if a stock is over or undervalued. We will focus on technical analysis of APPL's stock price at first and at the end of this article we will provide our latest stock valuation of APPL based on their last earnings report
Fundamental analysis focuses on the financials of a firm to determine a value of stock, while technical analysis uses statistical techniques (such as fibonacci and moving averages and pivot points in order to determine if a stock is over or undervalued. We will focus on technical analysis of APPL's stock price at first and at the end of this article we will provide our latest stock valuation of APPL based on their last earnings report
Analysis of APPL's stock price
When it comes to technical analysis we prefer to keep things simple. We look at the moving averages of a stock as well as the relative strength index (RSI). The RSI as the indicator for buying and selling, the moving averages provide buy and sell signals to as well as providing potential support and resistance levels. We tend to focus on 10 day and 30 day moving averages for shorter term stock price movements while focusing on the 50 day and 200 day moving average for medium to longer term stock price movements. The image below shows the stock price of Apple (APPL) with its 50 day and 200 day moving average as well as its RSI.
An RSI indicator of above or around 70 indicates that a stock is overbought (and is due for a correction). However a 50 day moving average that is above the 200 day moving average is a positive sign for a stock price. So the RSI is indicating a potential stock price decline but the moving averages currently indicates positive momentum for Apple (APPL) stock. So if the RSI is correct to where can APPL stock potentially decline? Well as we mentioned above the moving average values also indicate support and resistance levels of a stock. So should the stock of APPL decline it will find support at its 50 day and 200 day moving average whose values are as follows:
So APPL stock will find support at $343.64 and if it breaks this resistance level and falls further it will find support at its 200 day moving average which is currently at $292.83.
However the 50 day and 200 day moving average is longer term measures. So lets take a look at shorter term moving averages. We tend to prefer the 10 day and 30 day moving average for shorter term indicators
 50 day moving average: $343.64
 200 day moving average:$292.83
So APPL stock will find support at $343.64 and if it breaks this resistance level and falls further it will find support at its 200 day moving average which is currently at $292.83.
However the 50 day and 200 day moving average is longer term measures. So lets take a look at shorter term moving averages. We tend to prefer the 10 day and 30 day moving average for shorter term indicators
In the same vein as the longer term moving averages the 10 day and 30 day moving averages provides indicators of short term stock momentum (positive is when the 10 day moving average is above the 30 day moving average, and negative momentum is when the 10 day moving average is below the 30 day moving average). The interpretation of the RSI remains the same. Again over the shorter term the moving averages indicates positive stock momentum, hardly surprising considering the strong surge in APPL's stock price in recent weeks.
The pivot point of APPL is very close to its 30 day moving average. If APPL stock is to increase it will find resistance at the following three resistance levels:
And if the stock of APPL was to decline from its current levels it is set to find support at the current support levels:
 Resistance 3: $419.14
 Resistance 2: $406.53
 Resistance 1: $395.10
And if the stock of APPL was to decline from its current levels it is set to find support at the current support levels:
 Support 1: $371.06
 Support 2: $358.45
 Support 3: $347.02
Our latest stock valuation of Apple (APPL) using fundamental analysis
So what do we value Apple's stock at after the release of their 2nd quarter 2020 earnings report? Following Apple's 2nd quarter 2020 earnings report our valuation model provides a target price (full value price) for Apple at $240.50 a stock (down from our 1st quarter 2019 earnings report valuation of Apple). We therefore believe that the stock of Apple is overvalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $240.50. Therefore we believe a good entry point into Apple stock is at $216.50 or below. We expect the stock of Apple to pull back from current levels to levels closer to our target price (full value price) in coming weeks and moths as we believe it is significantly overvalued at this point in time.
Since the stock of Apple is trading at well above our target (full value) price and our suggested entry price we will go against most market commentators and rate Apple as a sell
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $240.50. Therefore we believe a good entry point into Apple stock is at $216.50 or below. We expect the stock of Apple to pull back from current levels to levels closer to our target price (full value price) in coming weeks and moths as we believe it is significantly overvalued at this point in time.
Since the stock of Apple is trading at well above our target (full value) price and our suggested entry price we will go against most market commentators and rate Apple as a sell
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