Apple share price surges 13% from the lows – but can it keep going?

The US-based tech giant saw its shares rebound 13% this week after hitting a six-month low on Monday amid the economic impact of the Covid-19 pandemic. But can the stock keep rallying?

The US-based tech giant saw its shares rebound 13% this week after hitting a six-month low on Monday amid the economic impact of the Covid-19 pandemic. But can the stock keep rallying?

Well, according to 42 analysts covering the stock, their average 12-month price target for Apple sits at $303.30, implying that the company’s share price has the potential to rally a further 19.4%.

The most optimistic price target for Apple sits at $370 and the lowest comes in at $155, suggesting that the stock has a potential upside of 45.6% and a downside of -40.9%.

Apple is trading at $254 a share as of 17:20 (GMT) on Wednesday.

Apple: technical analysis

Apple stock has rallied from the six-month low seen at the beginning of the week, but while a bottom appears to be in place, the price still needs to clear recent resistance, according to Chris Beauchamp, chief market analyst at IG.

Bounces over the past two weeks have run into resistance around $260, with the price unable to hold above these levels. This high was also an area of support in late February when the price first began to rally after a big decline.

A close above this level would open the way to $278 and $304, while a close above $260 would put the price outside the descending channel that has been in place since the end of March.

Looking to trade Apple and other US tech stocks? Open a live or demo account with IG today.

While the daily chart points to a decent rebound of 22%, the hourly chart shows that the downtrend is intact for the time being.

Indeed, having faltered at $260 it may now resume its downward move, heading towards $236 and $214. It would need a break above $260 and then $280 to really end the sequence of lower highs.

You can go long or short Apple with IG using derivatives like CFDs.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

React to global volatility

Market volatility continues as coronavirus dominates the global agenda. Trade with us to take advantage of:

  • Tight spreads – from just 1 point on major indices, and 2.8 on US crude
  • Guaranteed stops – they’re free to use, and you’ll only pay a small fee if they’re triggered
  • Round-the-clock assistance – our highly-skilled team are on hand to support you

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.