Apple’s stock rose over 9% this week due to new U.S. manufacturing investments and tariff exemptions. According to the tradeCompass forecast, it remains bullish as long as the stock stays above $213.50, aiming for a target range of $238.50 to $241.50. If it closes below $213.50 for two consecutive days, the outlook will become bearish. The increase in Apple shares follows major investments in U.S. manufacturing and positive trade news. On August 6, Apple announced an additional $100 billion for its American Manufacturing Program, bringing its total U.S. investment to $600 billion over four years. This investment includes upgrades in chip production, glass manufacturing, and expanded research facilities. The Wall Street Journal reported that President Trump exempted large tech companies, including Apple, from 100% tariffs on semiconductor imports, as long as they commit to U.S. manufacturing. This exemption helps Apple avoid trade risks and encourages domestic growth. As a result of this news, Apple shares increased over 5% on the announcement, followed by another 3% gain the next day. The target zone of $238.50 to $241.50 is where traders may start taking profits or short positions. Longer-term targets are set at $248.50 and $255.00, where selling pressure may occur. As of August 8, 2025, Apple stock showed a weekly gain of 5.54% and a 10.57% increase over three months. However, it remains down 11.61% year-to-date, indicating potential for recovery. With the recent 9% rally, Apple signals a bullish trend as long as it stays above $213.50. This movement is supported by the significant $100 billion U.S. manufacturing investment and important tariff exemptions. In the coming weeks, this presents an opportunity to aim for our first target zone of $238.50 to $241.50. We should consider buying call options set to expire in September or October 2025 to take advantage of this potential upward movement. The implied volatility for Apple options is currently moderate, making premiums reasonable since the CBOE Volatility Index (VIX) fell below 15 last week. This allows us to establish bullish positions without paying too much for the insurance. The target range of $238.50 to $241.50 is a smart spot to consider taking some profits. We might create bull call spreads with a short strike within this range to reduce costs and clarify our maximum gain. In past situations involving similar investments from Apple in the late 2010s, the stock often stabilized at resistance levels before continuing its upward trend. Our risk is defined by the support level of $213.50. Two daily closes below this price would indicate that the bullish momentum has faded, prompting us to exit our call positions. At that point, switching to put options could be a wise strategy to guard against a downturn. This technical setup also benefits from a favorable market environment. The July 2025 inflation report was better than expected, reducing fears of aggressive action from the Federal Reserve. Additionally, Apple’s earnings report from late July highlighted strong growth in its high-margin Services division. These elements provide a strong fundamental basis for a bullish technical outlook.

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