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Apple stock price is in a strong bull run after soaring by over 40% from its lowest level in April. This rebound could accelerate in the coming weeks after it formed a golden cross pattern on the daily timeframe. So, is it a good buy ahead of the iPhone Air launch?
Apple Stock Price Rises Ahead of the iPhone Air Launch
Apple, the third biggest company in the world, will be one of the top names to watch this week as it unleashes its iPhone lineup for the year.
Media reports suggest that the new iPhones will be much different from the existing ones. They will have a different back from the one buyers have used to in the past five years.
Most importantly, the company will introduce a brand new premium phone known as iPhone Air that will be a bit thinner than the existing models, a move that may affect its battery life. Most importantly, leaks show that the phone will have the same A19 processor as the iPhone 17.
Apple hopes the new iPhone Air will be sandwiched between the base iPhone 17 and Pro models. It also hopes that its new design will entice more users to upgrade their phones because the recent models have been eerily similar.
Apple’s Business is Under Pressure
The new iPhone 17 launch comes at a difficult time for Apple, with its recent results showing that its business was slowing and competition with Samsung and Xiaomi was heating up.
Most importantly, Apple has not had a hit product in the past few years, with the only recent launches being the Vision Pro, whose sales have had minimal impact on its overall revenue.
The company has also lagged behind other technology companies like Google and Meta Platforms in the artificial intelligence industry. Siri, its main customer-facing product is still unable to answer basic questions, leaving the company under pressure from investors.
The company is reportedly developing its own AI-powered search engine, which could save billions of dollars by eliminating its reliance on Google. Another rumored option is for it to spend billions of dollars acquiring Perplexity AI.
The ongoing trade conflict between the US and China could also push more Chinese to buy local brands, which have become highly advanced in the past few years.
The most recent results showed that Apple’s revenue rose to $94 billion in the second quarter from $85 billion in the same period last year. Its nine-month revenue rose to $313 billion from $295 billion.
Apple’s net income rose to $23 billion from $21 billion in the same period last year. According to Yahoo Finance, Apple’s revenue is expected to be $101.5 billion in the third quarter, a 6.95% increase from last year.
The upcoming iPhone Air event comes when Apple has become overvalued, a sign that investors are ignoring the potential risks. Its forward price-to-earnings ratio has moved to 32, slightly higher than the sector median of 31 and higher than the five-year average of 28.
AAPL Stock Price Technical Analysis
The daily timeframe chart shows that the AAPL stock price has rebounded strongly in the past few months, moving from a low of $168 in April to $240 today.
It formed a golden cross pattern on August 19 as the 50-day and 100-day Exponential Moving Averages (EMA) crossed each other. This pattern normally leads to a strong bullish breakout, which explains why it jas soared to the highest level since March.
However, the Apple stock price is now at the strong pivot reverse of the Murrey Math Lines tool, a notable point where reversals normally happen.
The stock has also formed a doji candlestick pattern, which is characterized by a small body and small upper and lower shadows.
Therefore, the most likely scenario is where the stock drops during the Apple event. If this happens, it may move to the major S&R pivot point of the Murrey Math Lines at $225.
