Apple(US:AAPL) Youtube·2025-12-08 14:15Core Viewpoint - Apple has shown a recent resurgence in its stock performance, aligning closely with the S&P 500 but still underperforming compared to its tech sector peers [2][10]. Stock Performance - Apple's stock is up approximately 13%, while the tech sector has increased by about 22.5% [2]. - The company was previously the worst performer among the MAG 7 group but has improved its standing with a recovery [2]. Technical Analysis - A rising wedge pattern is observed in Apple's stock chart, with recent all-time highs at 288.62 [3]. - Key support levels are identified at approximately 279 and 265, with a short-term trading range between 265 and 277 [4]. Moving Averages and Momentum - The 5-day EMA has declined, but the stock remains within the wedge pattern [5]. - The 21-day EMA is around 275, indicating potential support, while the RSI shows a slowdown in momentum, moving out of the overbought territory [5][6]. Expected Price Movements - An expected move of about 3.3% is projected for the upcoming December 19th, with a 6% move anticipated for January [7]. - A breakout above the 277 level could target around 295, aligning with the upper edge of the range and the plus two standard deviation channel [7]. Market Sentiment and Trade Strategy - Positive sentiment surrounds Apple, with Evercore ISI setting a price target of $320 [9]. - A bullish call vertical strategy is suggested, involving buying a 275 strike call and selling a 295 strike call, with a risk of approximately $800 per spread and a potential gain of up to $1,200 if the stock exceeds 295 [11][14]. Volatility Considerations - Implied volatility is currently low, at about 9%, which is in the bottom 10% of the past 52 weeks, making it a favorable environment for buying verticals [15][16].