AAPL Stock Price and Forecast: Why is Apple stock falling?


  • Apple (AAPL) stock slides as tech dives.
  • AAPL is still in a downtrend and below key moving averages.
  • AAPL is set for further losses and is short-term bearish.

Apple stock (AAPL) took the rise in bond yields poorly on Monday as tech stocks and the Nasdaq suffered disproportionally. The Nasdaq closed as the worst performing index of the day down 0.81%, while the Dow was actually positive and the S&P 500 lost just over a quarter of a percent. Apple dropped over one percent as concerns over the rising US 10-Year bond yield hurt interest rate sensitive tech stocks. While this should not be of much impact on Apple (AAPL) stock, it just got pulled lower by association and sector selling.

If the Nasdaq is under pressure (and remember the futures market is the driver of the stock market with about four times the volume), then to hedge positions market makers will sell the components. Apple is the number one component, representing nearly 11% of the Nasdaq 100. If traders are selling the Nasdaq 100, then Apple is going to get sold along with it. As we can see on Monday, Apple opened lower and traded in a light range for most of the session, closing out the day at $145.37 for a loss of 1.05%.

Apple key statistics

Market Cap $2.4 trillion
Enterprise Value $2.3 trillion
Price/Earnings (P/E) 29

Price/Book

38
Price/Sales 9
Gross Margin 41%
Net Margin 25%
EBITDA $112 billion
52 week low $103.10
52 week high $157.26
Average Wall Street rating and price target

Buy $166.7

Apple stock news

This week will see increasing pre-order data for the new iPhone 13, and initial rumours are that the data should be positive. Initial data quoted by Wedbush analyst Daniel Ives sees orders 12-13% ahead and higher in China. 

Apple stock forecast

Thankfully, we were not taken in by all the bullish commentary surrounding the latest iPhone release. Yes, the numbers sound positive and may provide a catalyst for upside, but our main focus is technical analysis. Apple has been in a steady downtrend since the middle of September. The recovery from the middle of last week was not matched by a recovery in the Price Volume Trend (PVT) indicator. This adds volume if prices are above the previous session close and subtracts if not. Despite the recovery in the Apple share price, the PVT was flatlining, which marks a bearish divergence. 

FXStreet View: Neutral, bearish below $144.50, bullish above $150.

FXStreet Ideas: Buy a short date put on a break of $141.67 as the volume profile gets thin below this level, meaning a potential price acceleration.

 

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