Apple Stock Price and Forecast: AAPL down but not out

Update September 9: Apple stock price faced rejection once again above the $57 mark, pulling back sharply from record highs of $157.26, losing 1% on Wednesday. Although, AAPL remains on track to post fresh lifetime highs, as the technical picture appears constructive. The overall downbeat mood on Wall Street indices likely dragged Apple shares lower while profit-taking could be also attributed to the pullback in prices. Tapering expectations from major global central banks keep investors unnerved.

Apple stock has broken out of the continuation wedge formation it formed and so has signaled further strong gains for the stock. The move in Tuesday's premarket after Labor Day is signaling more gains as the tech titan trades up toward $155 in the premarket session. The catalyst for the move is the bad-news-is-good-news employment report on Friday. The bad news was the number missing estimates by quite a lot, but the silver lining for equities is that this means the Fed will keep its ultra-loose monetary policy for longer and put off any potential interest rate hikes. Will we ever see an interest rate hike again? Now we are beginning to wonder. Certainly, many of the new traders who have entered the market in the pandemic will never have seen positive interest rates. The equity market has no alternative but to rally with such loose monetary policy, and Apple as the largest stock in the universe is the lead player.

There have of course been some strong fundamental news pushing Apple stock along with reports that iPhone 13 shipments will be higher than forecast and investment bank Bernstein saying in a note last week that Apple could sell 1.5 million of its Apple cars by 2025. CNBC also had a report last week saying that mass production of the car could start by 2024. That is the next big thing for Apple investors to get excited about. The history of Apple product launches is good with strong customer loyalty and a design ethos that emphasizes quality and beautiful design. 

Apple key statistics

Apple stock forecast

The last few bearish issues have been tidied up on the chart with the breakout from the wedge formation. The bearish divergences from the Relative Strength Index (RSI), the Moving Average Convergence Divergence (MACD), and the Commodity Channel Index (CCI) have all been broken, and the MACD has crossed over into bullish territory. Apple has broken out of the wedge, so the first support is the breakout point at $152.60. Near enough to the 9-day Simple Moving Average (SMA) at $151.67. With a breakout, we do not really like to see dips below here as that puts the stock back in the neutral short-term range. If we do break lower, watch $141.67 as there is a volume gap below, meaning a break could accelerate to $134. 

The trend is firmly bullish above $152.60. Easy to say when we are near all-time highs!

Previous updates

Update: Apple retreated from a record high of $157.26 per share, ending Wednesday down 1.01% at 155.11. Wall Street had another bad day, although major indexes managed to trim most of their intraday losses ahead of the close. The Nasdaq Composite shed 87 points, as the US Beige Book showed that several districts indicated that businesses anticipate significant hikes in their selling prices in the months ahead, also noting that the local economy "downshifted slightly" in August.

Previous update: Apple just printed a fresh all-time high in Tuesday's premarket as equity markets continue to take the positives from a negative employment report! The Fed is unlikely to tamper or taper anytime soon so equities have nowhere to run but higher. Apple has traded up to $155.20 so far in the premarket on Tuesday.