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.

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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.

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