Apple Stock a Buy: Apple Set to Unveil New Products in March. Can it Bring Fresh Rally for AAPL?

Apple Stock a Buy: Apple Set to Unveil New Products in March. Can it Bring Fresh Rally for AAPL?
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Apple Stock a Buy or Sell: The article is meant to analyze whether AAPL is Buy or Sell in the Short term. We will look upon Technical Analysis and other fundamental factors for the same.

Apple Stock a Buy or Sell: Technical Analysis of Apple Share

Finding Support and Resistance Using Pivot Points

Apple Stock buy or Sell

The image above shows the chart of Apple Inc since July 2021. Pivot points for a particular month along with support and resistances are marked for reference. The last couple of months has been volatile for Apple Inc just like the broader market, thanks to inflation fears propelling sell-off in growth stocks.

But pivot points can be used to find support and resistance for short and long-term analysis. For example, on 20th September, AAPL made a low of $141, took support at S3, and bounced back. Similarly, on 13th October, it made a low of $139, took support at S1, and reversed very strongly after that. These levels are known before start of every month and hence help us that whether a particular stock can reverse from a particular point or not.

For the month of February, AAPL traded mostly above pivot point except towards the fag end, due to Russia- the Ukraine war. Once it broke pivot point for February, it propelled selling, the stock took support at S2 and reversed beautifully on 24th February. In the month of March also, volatility seems to continue and can only subside if war comes to a conclusion. But $152 will act as strong support going forward and $176 will act as resistance for AAPL.

Also, if AAPL breaks $152 on the lower side, $140 will act as the next resistance, low of 20th September and 13th October. If $176 is broken on the higher side, then the stock will march towards a recent all-time high of $183. Support and resistances are tabulated below considering different methods

Name
S3
S2
S1
Pivot
R1
R2
R3
Classic
114.3
142.5
158.6
170.8
186.9
199.0
227.2
Fibonacci
142.5
153.3
160.0
170.8
181.5
188.2
199.0
Woodie’s
131.6
143.1
159.8
171.4
188.1
199.6
216.3

Apple Stock a Buy or Sell: Identifying Trend Using Moving Averages and Supertrend Indicator.

Apple Stock buy or Sell

Source: Trading View

Also Read: Apple Stock Forecast 2022

Also Read: Apple Stock Split

A blue-chip stock is easy to invest in primarily because it follows technical indicators quite accurately. Moving averages tell about short-term trend. 10 days and 20 days EMA is plotted in the figure above. As one can see that when 10 days EMA has crossed 20 days EMA from below, it has started fresh buying in the stock. Similarly, when it crossed 20 days EMA from above, stock has either remained flat or in steep downtrend. As of 1.03.2022, 10 days EMA is trading below 20 days EMA, warning investors against fresh buying. But at the same time it does not mean that investors should short or sell shares in panic as it may reverse soon.

Supertrend indictor (10,3) is also plotted in the figure above. As one can see, Supertrend indicator showed green signal on 19th October, and stock has given fantastic return since then. As on 1.03.2022, it is showing red signal, indicating against fresh buying. Traders can short the stock for very short term gain but it is expected to reverse soon as last couple of candles are green. Supertrend indicator is at $172.68, and if AAPL crosses this level in near future, EMA will also signal buy and investors can initiate fresh buying beyond this level.

Moving averages with their signals are tabulated below for reference

Period
SMA
Signal
EMA
Signal
MA5
163.38
Buy
164.95
Sell
MA10
166.73
Sell
166.42
Sell
MA20
170.07
Sell
168.05
Sell
MA50
171.13
Sell
167.59
Sell
MA100
163.15
Buy
163.49
Buy
MA200
152.03
Buy
154.45
Buy

From technical perspective, AAPL is wait and watch at the current levels. It is trading below pivot point ($170.81) and that indicates that it carries risk of downtrend in near future. Also 10 days EMA is below 20 days EMA and Supertrend indicator is in red. All these signals towards AAPL is not a buy at current levels.

Apple Stock a Buy or Sell: A Big March Event is Awaiting Apple

Apple produced one of best quarter results when it announced Q4 results in January 2022. It started a fresh rally, but it was short lived due to fears of inflation and bad global cues, thanks to Russia- Ukraine war. Also, we saw that Apple Inc is not a buy from technical perspective. If anything can re initiate fresh rally in AAPL, that can be “Spring event” of Apple Inc scheduled in second week of March.

In this event Apple Inc lunches new set of products and unveil future strategies in front of investors. This year “Spring event” is marked as “widest array” ever.  

Probable products include upgrade in Apple M series silicon MacBook and iPads. Also, one of the bestselling products of Apple Inc – AirPods Pro is likely to get an upgrade. But, investors will be looking for an update on AR/VR product which is likely to be launched by end of year 2022 or early 2023. A successful product launch can take AAPL out of woods and can start a fresh rally. Here are what investors can expect from this spring event-

  • In the month of January, Apple Inc registered new iPad SKUs with Eurasian Economic Commission. It indicates towards new entry in iPad series at entry level and a redesigned iPad Air. A new Mac Mini with M2 chip enabled and 13 inch MacBook Pro can find its place in the event.
  • But, new budget friendly 5G iPhone SE 3 will catch everyone’s eye. It is the move to attract budget friendly android users to switch towards iPhone for a start. It has potential of a very big market not only for android users but also for old iPhone users, waiting to change their iPhones.

Apple Stock a Buy or Sell: Conclusion

All said and done, Apple is not immune to the semiconductor shortage and has felt its share of its pain in the past couple of months. But it fared well, thanks to the robust supply chain and investors’ confidence. Also, new product launches can change the trend for AAPL, as seen in the past years. AAPL is down by 9.36% (as of 28.2.2022) since start of 2022 and it provides an opportunity to enter the stock just before the big event.

Apple Stock a buy or a sell? Technically, the stock is not a buy-in short term but this can change upside down after a successful Spring event scheduled on 8th March. Until then AAPL is on the wait and watch list.

-Vineet Agarwal

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

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