Apple’s share price on the move after outlook upgrade
Apple’s share price remains buoyant following a significant upgrade in its outlook by a major American banking institution earlier this week. Investors piled back into Apple Inc, as Bank of American changed its outlook from ‘neutral’ to ‘buy’, sending Apple’s share price to a fresh 2019 trading high and closer to its key 200-day moving average.
Bank of American upgraded Apple’s twelve-month price target to $210.00, which was much more bullish than the previous target of $180.00. Markets participants saw the upgrade as a signal that tech giants share price may have bottomed out earlier this year when Apple Inc slipped to $140.00 at the start of the year.
The recent upgrade from Bank of American means that Apple’s share price could appreciate by almost twenty percent if it reaches the bank’s bullish upside target. Research from the bank suggested that investors have grown to bearish on the hardware sector of Apple’s business and noted that demand issues were not entirely structural over the long-term.
Apple’s share price has recently fallen out of favor with investors due to a slump in iPhone-related sales in the Chinese market, as the world’s second-largest economy suffers from an ongoing economic slowdown. Forward-looking investors are also factoring-in that Apple is working hard to reinvent itself, with a series of new product offerings.
The company is set to introduce a streaming TV service this year, with the hope of rivaling Netflix and Amazon and has spent over $1 billion in content. Apple is also expected to introduce Apple Pay, which will rival PayPal and Square and also launch its own credit card, in a joint venture with banking heavyweight Goldman Sachs.
Apple Daily Mountain Chart | Source: ActivTrader
According to the daily chart, the $170.00 level is now major technical support for Apple, buyers have a strong chance to build on the early week momentum above this key area. Key upside resistance is found at Apple’s 200-day moving average, just under the $190.00 and the psychological $200.00 level. Any move below the $170.00 level would see bulls losing recent momentum and we should expect a further test of the $165.00 support level.
Written by Nathan Batchelor, External Analyst
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