- AAPL stock recovered from early losses on Thursday.
- Apple stock closed at $143.24 for a loss of just under 1%.
- AAPL still looking to make all-time highs above $145.
Apple stock followed the broad market roller coaster on Thursday with initial early losses being wiped out before some intraday profit-taking saw the stock shed some ground. Still, a solid performance given how negative things looked early on Thursday with the main indices down 2%. The strong run toward the record high looks to be back on track with markets on Friday making strong gains. US futures are pointing to gains of up to 1%. The strong run had seen Apple drift into overbought territory on the Relative Strength Index (RSI), and as of yet, this has not moved back to neutral. So some cause for concern. Given the strong run, with Thursday breaking the seven straight days of gains, it would not be too surprising or disappointing to see some profit-taking on Friday. This would also help the RSI move back to neutral.
Why was Apple down yesterday?
Thursday was a tough day for markets as finally fears over the Delta variant hit home. Apple had also risen for seven straight sessions. The RSI was overbought and treasury yields dumped, spooking investors who feared that economic growth was slowing. Added to all this were the Fed minutes showing tapering and rate hikes might be higher on the agenda than previously thought.
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Apple key statistics
| Market Cap | $2.41 trillion |
| Enterprise Value | $2.1 trillion |
| Price/Earnings (P/E) | 32 |
|
Price/Book |
37 |
| Price/Sales | 9 |
| Gross Margin | 0.4 |
| Net Margin | 0.23 |
| EBITDA | $100 billion |
| Average Wall Street rating and price target | Buy $159 |
Three reasons why Apple can break all-time highs
1. Overall, global equities are back in bullish mode. European markets are up, and US futures are all up on Friday.
2. Apple is still holding above the 9-day moving average, and the trend remains strong.
3. AAPL stock is above the key $135-137 support zone. This is holding the bullish trend in place and is also where the 21-day moving average sits. This is an area of high volume and should act as strong support. A break here would turn the short-term trend negative.
As mentioned, caution should be taken with the RSI being overbought.
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