- European markets set new record highs on Monday.
- Nasdaq has lagged but looks to play catch up.
- AAPL shares need to retake the earnings high.
AAPL shares are set for a bounce on Monday with markets in Europe posting strong gains on Monday. The Nasdaq has been lagging equity markets recently, but this looks set to change on Monday. While Apple is not a Nasdaq stock per se, it is more global and as the top S&P 500 member it does seem to attract more buying interest when the Nasdaq lights up. The post-earnings sump that has affected Apple may be about to change. Other tech heavyweights, the so-called FAANG stocks, have been gearing up for a move higher, with most having formed some nice bases at previous consolidation zones. FaceBook (FB) popped a record high last week and both Apple and Facebook had posted stellar results. Facebook takes record highs, while AAPL is still more than 10% below its earnings high.
Apple results were well ahead of analyst forecasts. Now the stock did have a decent bullish run-up before those results, but even still it is unlikely that many had anticipated a 40% beat. Added to this is the fact that Apple announced it was to increase its dividend and buyback program.
AAPL stock forecast
Regardless of the earnings, dividend and buybacks, the stock still sid post release. A $137 post-result high has steadily been depreciated down to $122. Currently, AAPL shares are moving back slightly to trade just over $127. AAPL shares retreated to a strong support zone and have been forming a base since. Volume above $128 begins to diminish, meaning AAPL shares may find it easier to push toward $135 on a break of $128. It is very obvious from the volume profile on the right of the chart that a break of $137.07, the post-earnings high, has a total lack of volume and could lead to an accelerated move to test record highs.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.