AAPL
📉 Apple reached historically significant support at its 40-month moving average, a level that has previously marked strong buying opportunities (e.g., 2022, 2019, 2016).
🤔 The market likely overreacted, discounting an unrealistic worst-case scenario regarding tariff impacts, creating an attractive entry point due to excessive pessimism.
🏭 Apple possesses strong fundamentals, including vast cash reserves and strategic options like diversifying production (e.g., India) to mitigate potential tariff effects, countering fears of collapsing sales.
@VisionariosBolsa:
“That value is none other than Apple. Apple is a stock that I added this week, not to my long-term system, but to my savings portfolio, basically because I think it has presented a super interesting opportunity. I shared this opportunity both through the premium newsletter, you received it on Wednesday, I mentioned it on Wednesday, and I also shared it through the premium chat of the community. Why did I like Apple so much, and why, as I said, have I put it in my savings portfolio? I haven’t even put it in with the long-term system, precisely because, let’s go to a monthly chart, I’ve seen that Apple has gone, to begin with, to exaggerated oversold levels. As I always say, the market, in these events of so much uncertainty, as I’ve been telling you in recent weeks, tends to discount the worst event, tends to go to the worst, that a crisis is coming, that this company is going to go bankrupt, whatever. What’s happening with Apple? Well, it has been the most oversold, precisely because there hasn’t been a stop talking about how an iPhone will now cost 2,500, then 3,000, because of the tariffs, because of course, because nobody will buy iPhones anymore. But in whose head does it fit that nobody will buy iPhones? In whose head does it fit that the company with the most cash in the world isn’t capable, doesn’t have its strategies to avoid these tariffs, has so much dependence? In fact, super quickly when the whole tariff issue came out, they said, ‘Okay, we already have part of production in India, but we are going to promote this production in India much more because India is a country that, as soon as the tariffs came out, said, ‘Okay Trump, what do you want? I want to negotiate, I want to reach an agreement.’ It’s a very pro-United States country, has very good relations, and Apple has already said it’s going to decentralize its operations a bit from China. It’s true that many iPhones are produced in China, yes, but then they send them to assemble in other countries. Therefore, I mean, there are so many strategies that Apple has so that those very basic numbers that were coming out, that now an iPhone will cost €2,500, the cheapest one, aren’t reality. And besides, even so, that would affect all brands in the world and not just Apple, and therefore, it’s not real that Apple is going to stop billing. I mean, the market was discounting a real event that was actually unreal. Therefore, look how we went to an average, in this case, the 40-month one. It’s not an average that I usually reference much, but there are certain stocks, especially these solid ones, that long-term can maintain this average as one of their main supports. And in fact, if you look, we’ve gone to that 40-month average, an average we visited previously in 2022, an average we visited in 2019, an average we visited in 2016, that we visited in 2013, that we visited in 2008, that even there we broke a little below. But notice how whenever we touch that average, it tends to be historically a good buying point, tends to be one of the best supports this company has, and we’re talking about one of the most solid and largest companies in the world. Therefore, hey, we are taking advantage of a historic support point, and we are taking advantage precisely of the fact that the market is discounting an event that is not real. Therefore, notice how the purchase I made was around $180. We are at $198 right now. Let’s go back to a weekly chart. We had a super strong rebound this week, closing up more than five-something percent, but notice how we caught it lower because it started falling. In fact, it was much lower, it was at $169. I caught it around $180, and already in several days, I’m gaining 10%. My goal is not to gain 10%, but now simply to keep it in that savings account because I think it may have given a super interesting opportunity, as I say, for the long term to be able to maintain that trend. Furthermore, not only that, but we are already receiving news that now it seems that tariffs will not be applied to products related to chips, semiconductors, or smart devices like mobile phones and computers. Therefore, wow, it seems that now the market has discounted that super worst event. But what will happen next week? Who knows if we might see Apple rising 10% or even recovering averages. Therefore, as I said, we have taken advantage of that overselling, we have taken advantage of that support level, plain as day, to be able to have an opportunity that I think is historic at those levels, at those prices.”
Watch the exact part of the video where @VisionariosBolsa talks about Apple here:
Watch the video on YouTube
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