Apple (AAPL): After the Gap Close, What’s Next?

Sep 26

In our last analysis, we perfectly predicted the top for Apple at $233, and since then, the stock has been declining due to multiple factors. Apple dropped nearly 3%, driven by concerns over weaker-than-expected demand for the latest iPhone model during its first weekend, according to a securities analyst at TF International in Hong Kong.

China’s performance continues to drag on Apple’s financials this year, particularly in the first quarter when sales dropped by 24%. Full-year sales from China are expected to reach $60 billion, down from $72.6 billion in 2023, which accounted for a significant portion of Apple’s $383.3 billion overall revenue.

For now, we maintain a bearish outlook for Apple after the stock completed a gap close and was rejected at the 88.6% Fibonacci level. However, we are still eyeing an entry point and getting closer to it. We’re now placing a limit order to catch a potential dip. Our primary target is a possible double bottom around $196. While the price could dip even lower, we are playing this with a wider stop-loss and may use a DCA (Dollar-Cost Averaging) approach, as multiple entry points could emerge. Let’s see how the next few days or weeks unfold!