Apple’s share price bounced noticeably on Friday from its intraday lows of 253.43 in a trade investment upgrade from Wells Fargo. Apple share price had opened with an upside gap in Friday trading before trading lower. Still, it is now off intraday lows and up to 259.67 as at the time of writing, as an analyst at Wells Fargo indicated that the Apple share price was starting to look attractive for “long-term, patient investors following recent selloffs”.
Apple’s Asian operations are starting to pick up faster than expected, and suppliers are beginning to come back on stream. Apple had announced yesterday that all its 42 stores in China were now open following the extended shutdown occasioned by China’s coronavirus outbreak.
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Technical Outlook for Apple Share Price
Apple is still trading at 19% lower for the month, but long-term prospects look good as suppliers such as Foxconn start to reopen the supply links to the company. Presently, Apple share price activity sits on a support level formed by the daily lows of December 7, 2019 and January 3, 2020 at the 257.06 price level. Further intraday recovery following a bounce from this area targets the previous highs of 19 Nov/27 Nov 2019 and March 12, 2020 at the 267.59 price level, with 278.90 also having great potential to become a target for continued recovery.
On the flip side, a breakdown of 257.06 could result from any selloffs that could accompany bearish sentiment, stemming from continued US and global spread of the coronavirus pandemic. Such a selloff could target the support levels at 248.86 (November 1, 2019 low), 237.55 (21 Oct/31 Oct 2019 lows) or even 224.29 (October 8, 2019 lows) if the bearish sentiment prompts the kind of steep drops seen this week.