World Stock Watch

Apple’s Quest for $4 Trillion Market Capitalization

As the tech giant inches closer to a historic milestone, investors are keeping a close eye on Apple’s stock performance. Despite a broader decline in U.S. stocks, Apple remains poised to become the first company to reach a $4 trillion market capitalization.

A Golden Era of Growth Ahead?

Last Thursday, Apple set a fresh record high above $260, driven by Wedbush analysts’ optimistic outlook on the company’s artificial intelligence (AI) demand. The rollout of Apple Intelligence, unveiled in June, has been slow, but investors are hopeful that a major upgrade cycle will drive 2025 sales.

Technical Analysis: Key Price Levels to Watch

Apple’s chart reveals a bearish evening star pattern over the past three trading sessions, indicating a potential reversal. Investors should monitor key support levels around $237 and $218, while also keeping an eye on a bullish price target near $278.

Support Levels and Bullish Targets

The first level to watch is around $237, where buying interest may emerge near the 50-day moving average and the ascending triangle’s top trendline. A decisive close below this area could see Apple shares retrace to the $218 level, a region where investors may look for entry points near a trendline that links comparable price action between June and September.

Forecasting a Bullish Price Target

Using the measuring principle, we can calculate a bullish price target by analyzing prior chart patterns. By adding $41 to $237, we forecast a target of $278, a location where technical traders may look for exit points.

Apple’s Stock Performance

Since the start of the year, Apple shares have gained around 31%, outpacing the S&P 500’s 24% increase over the same period. As investors watch for the company to reach a $4 trillion market cap, they’ll be keeping a close eye on key price levels and technical indicators.

A Reversal in Sight?

The relative strength index (RSI) has made a shallower high, creating a bearish divergence and pointing to weakening price momentum. Additionally, volume spikes on June 21, Sept. 20, and Dec. 20 suggest portfolio rebalancing by larger market participants. As Apple’s stock continues to trend higher, investors will be watching for signs of a potential reversal.