Apple is close to forming a bullish golden cross chart pattern
Apple could get a much-needed boost to its stumbling stock in the form of a bullish chart pattern. The iPhone maker appears poised to form a “golden cross,” a chart pattern that emerges as a stock’s short-term 50-day moving average exceeds its long-term moving average, typically measured over 200 days. The technical indicator is widely viewed as a sign that an asset’s price will surge. Apple’s 50-day average sits at $221.03 as of Friday, while its 200-day average is $221.49. The potentially bullish technical move comes as the “Magnificent Seven” stock underperforms its peers. Apple is down roughly 8% in the year to date. Other megacap technology stocks such as Nvidia and Meta Platforms are up more than 40% during that time. Apple has faced several headwinds over the past year, including lackluster iPhone 16 sales and difficulties building out its artificial intelligence unit. This week, D.A. Davidson lowered its rating on the iPhone maker to neutral from buy after the firm was left underwhelmed by its latest iPhone release. In June, Needham downgraded the stock to hold from buy, citing the potential for the U.S.-China trade war to kneecap the company’s supply chain as well as the rolling back of AI-related initiatives. However, Apple shares could still surge if its stock forms the golden cross pattern.
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