Apple on pace for a record close

Technical Analysis

Shares of Apple are trading at $235 or up $2.85 or 1.22%. Closing this level would suppress the all-time high close level of $234.82 reached on July 16.

Wedbush was out with a report today saying Apple’s iPhone 16 sales in China are forecasted to see a significant rebound over the next year.

The analysts cite data from Counterpoint, which indicates a strong 20% year-over-year increase in iPhone 16 sales within the first three weeks of launch, marking a “robust start” in the Chinese market. The higher-end Pro and Pro Max models performed particularly well, with sales jumping by 44% compared to last year’s iPhone 15 models.

AI capability of the new iPhone is a theme for upgrades to be higher. In addition they point out that approximately 300 million iPhones globally have not been upgraded in more than four years. They project that Apple could sell over 240 million iPhone units in 2025

Additionally, Wedbush suggests that Apple could form a strategic partnership with Baidu in the coming months to enhance AI offerings in the Chinese market, while Apple’s collaboration with OpenAI, backed by Microsoft, remains crucial in the U.S. market.

The Wedbush analysts maintains an outperform with a 12-month price target of $300.

On Tuesday, the price spiked to a intraday high of $237.49. That was a new intraday high price for the company taking out they high intraday price from July 15 at $237.23 only by $0.26.

The price rotated to a low on Wednesday at $229.84 before starting a new run to the upside. The high price today has reached $236.18.

Technically, getting and staying above the high closing level is step one followed by the intraday high price at $237.49. The 50 day moving average at $225.54 would need to be broken and stay broken to sellers some confidence. On October 7, the price did move and close below that moving average level, only to bounce back above the very next day. See the black moving average line on the chart above at $225.54.

Apple is expected to announce the earnings on October 31 after the close. The earnings estimate is for $1.59 with revenues estimated at $94.34 billion. That compares to a year ago earnings of $1.46 on revenues of $89.49 billion.

  • Nvidia is also on pace for a record close today extending above the high close from Monday at $138.07. The current price is at $138.20 Nvidia will announce earnings on November 14.
  • Netflix is surging today by $67.63 or 9.84% to $755 after announcing better than expected earnings and forward guidance. That will represent a new high close for that stock. The prior high close was reached on October 10 at $730.29.
  • Intuitive Surgical also announced better earnings and revenues yesterday and it stopped is trading at a new record level. Shares are currently at $45.34 or 9.7% at $519.07.
  • J.P. Morgan announced earnings last week and it is on pace for a new record close today surpassing the high close up from August 30 at $224.80. It shares are currently trading up $0.95 or 0.42% at $225.37.
  • The S&P financial sector is up 2.49% this week after earnings announce have been consistently better than expectations. The sector is trading at a new all-time high of 792.31. For the year the sector is up 26.48%

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