Apple stock fell 14% from its ATH. How low can Apple stock go?

Stock Performance:

• Apple ( $Apple(AAPL)$ ) stock has experienced a 14% decline from its all-time high (ATH) and an 11% decrease year-to-date.

• The underperformance, particularly in comparison to other Magnificent Seven stocks, can be attributed to several factors:

1. Analysts downgraded Apple stock.

2. Counterpoint Research reported a 24% year-on-year drop in iPhone sales, while Huawei's smartphone sales saw a notable 64% year-on-year increase in the first six weeks of 2024.

Source: Countetpoint

Technical Analysis:

• A Double Tops reversal pattern is currently forming, with a target price of USD133.03 anticipated once the stock breaks below the neckline at USD165.24.

• Considering the weak candlestick pattern, it is plausible that Apple stock might challenge the neckline at USD165.24, potentially leading to a false breakout below the neckline to attract short selling interest.

• Short-term upside catalysts include the 2Q2024 earnings release scheduled for May and WDDC 2024 in June.

• Given the months-long wait for potential upside catalysts, bears could have ample time to generate market panic based on weak China sales and drive Apple stock lower.

• Our long-term outlook for Apple stock is positive, and investors with a long-term perspective might consider utilizing Fibonacci extension levels for accumulation. Support levels can be identified at USD162.69, USD135.18, and USD113.53.