Oh Apple, do I see a perfect buy setup?

As of January 23, 2025, Apple Inc. (AAPL) is trading at $223.66, experiencing a slight decline of 0.08% from the previous close.

In 2025, Apple has faced challenges, including a lackluster reception of its iPhone 16 series, which lacked significant AI features, leading to disappointing sales. The company's gradual rollout of AI capabilities has not met market expectations, contributing to a 10% decline in stock value year-to-date.

Analysts have mixed opinions on Apple's stock. Jefferies downgraded it to "underperform," citing weak iPhone demand, particularly in China, and skepticism about the market demand for Apple's AI advancements.

Conversely, Wedbush maintains an "outperform" rating with a $325 price target, anticipating a significant iPhone upgrade cycle driven by AI features.

Given these mixed perspectives, investors and traders should carefully consider their investment objectives and risk tolerance. However, it is a Buy in our book.

The stock is founding a support at 200 Day Moving Average. We saw test of 20 D MA and we are in the process of retesting low. If successful, this will trigger a buy setup.

Aggressive traders can start with small positions now and place initial stop below the recent low. The best setup would be an undercut of the recent low and rally.

Given Apple’s Valuation metrics, $259 would be a “rich” valuation but I would expect perhaps a test of recent high as a possible target. Earnings 1/30/2025.