To The Moon

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: Analysts downgraded Apple stock. 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.