What’s On Apple Inc. (AAPL)’s Horizon

Page 2 of 2

Based on the changes since that article, I am raising my forecast on the tech giant to $700-plus within the next 12 months. In fact, I wouldn’t be surprised to see shares push $1,000 within the next 36 months. Sure, there will be price gyrations during this time. However, as long as the price stays above the 200-week simple moving average, any drops can be viewed as buying opportunities. Here’s why:

1. Double Bottom On The Weekly Chart
Technical support, in the shape of a double bottom, developed on the weekly chart at the 200-week simple moving average. The price is now above the 50-week simple moving average. Technically, further upside to retest the $700 highs appears probable.
2. Smartphone Growth In Overdrive
Market research firm IDC projects a 40% increase in smartphone sales in 2014. This includes more than a billion smartphones and tablets being sold to emerging markets such as the BRIC nations (Brazil, Russia, India and China). Apple is in position to gain market share based on this growth, and the cheaper version of the iPhone 5 will surely help in these markets.
3. Respected Wall Street Firm Sets $777 Price Target
While I don’t generally pay much attention to most Wall Street firm projections, Cantor Fitzgerald has initiated a “buy” recommendation and a $777 price target on Apple’s shares. I have respect for Cantor Fitzgerald, and when its forecast supports my own research, if nothing else it raises confidence in my price targets.
4. Huge China Deal
Apple Inc. (NASDAQ:AAPL) is holding its first-ever media event in China on Sept. 11, a day after the new iPhones will be officially announced.Rumors are that Apple will use this opportunity to announce the long-awaited deal with China Mobile Ltd. (ADR) (NYSE:CHL), which is the world’s largest cellphone carrier with more than 700 million active users. Clearly, there are impediments in the way, but the potential for a lower-priced iPhone for this market means strong possibilities remain. This deal would be a major upside catalyst for Apple shares.

Risks to Consider: Now, don’t get me wrong — I’m not telling you to stick with a stock that you believe has value regardless of what happens to the price. Be certain to use basic technical tools such as the 200-day simple moving average to confirm your fundamental analysis. Should Apple’s price break the 200-week simple moving average, then my bullish projection is void.

Action to Take –> I like Apple Inc. (NASDAQ:AAPL) right now on a breakout close above $500 with a $700-plus 12-month target price.

P.S. — Everyone is talking about Apple’s next iPhone. But did you know Apple just made a $256 million move that could have huge consequences on your wallet? Click here to find out how the tech giant is threatening the entire banking industry.

– David Goodboy

The article The Best Is Yet To Come For Apple originally appeared on StreetAuthority and is written by David Goodboy.

David Goodboy does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC does not hold positions in any securities mentioned in this article.

Warren Buffett’s Top 5 Stocks
Buffett’s firm, Berkshire Hathaway, holds dozens of stocks. But these five make up 75% of its portfolio… worth $65 billion. Click here to get Buffett’s top 5 stocks plus his 16 latest buys, FREE.
Page 2 of 2