- Apple stock pulls back on Tuesday as markets fall.
- AAPL falls back to test breakout level.
- Apple shares are still set for further gains.
Apple stock fell back marginally on Tuesday as some bears escaped and managed to cause some fun for themselves on Tuesday. Global markets all suffered modest falls of about 1% on Tuesday with the main US benchmarks all closing between 0.7-0.9% lower with the poor old Russell 2000 underperforming once again and closing down 1.2%. The catalysts were the poor US retail sales numbers and some lockdown news coming from Australia and Asia, which is spurring fears of the Delta variant wreaking some economic havoc. Apple has been performing strongly the last few sessions and in the process of confounding our bearish call last week. We are nothing if not flexible here at FXStreet, and once $150 was broken we had to end that strategy and move on. Tuesday's move has seen Apple stock pull back and test the breakout level at $150. A pullback from a breakout is no bad thing technically, so long as the breakout level, in this case $150, is held. Is this then a buy-the-dip opportunity?
Apple key statistics
|Market Cap||$2.5 trillion|
|Enterprise Value||$2.3 trillion|
|52 week low||$103.10|
|52 week high||$151.19|
|Average Wall Street rating and price target||
Apple stock forecast
Apple has now presented us with an opportunity, as have the major US indices. We have to decide, therefore, if the risk/reward remains skewed to more gains and identify the key levels to trade around. Breaking $150 was a strong move, and making new all-time highs is certainly a positive trend. It is not easy to say that making all-time highs is bearish! Breaking the wedge or pennant formation was a nice continuation move, and the main momentum oscillators have trended in the same direction, helping to confirm the breakout.
The first support is at $150, the previous all-time high, and it was a potential double top. $149 just underneath is where the 9-day moving average sits and also the top of the pennant/wedge formation. $149-150 is our short-term strong support zone and a definite buy-the-dip opportunity in our opinion. Just as always, use stops. Breaking lower would end the short-term bullish trend and put the stock in a more neutral position. Below $141.67, volume thins out a lot, so any break here will likely accelerate to $135.
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