- Apple stock declines for a second straight day on Monday.
- AAPL's drop was less than feared as equities stabilize.
- Friday's jobs report is now the next key data point.
Apple (AAPL) and equities, in general, survived Monday quite well with participants having feared the worst following Friday's rout. The main indices lost less than 1%, and Apple was slightly worse losing 1.37%.
Also read: Apple Stock Deep Dive: AAPL price target at $100 on falling 2023 revenues
Apple stock news
The new iPhone is rumored to be launched on September 7 as Apple has sent out media invitations to an event, according to reports. Bulls hoping for this to lead Apple stock higher though may be in for disappointment as the tech giant does not have a great record of outperformance after iPhone launches. It seems the anticipation of the event is the greater catalyst. "Better to travel than to arrive," according to the old stock market adage. The iPhone launch will be keenly watched anyway and will perhaps overshadow recent headwinds from factory shutdowns in China due to the heatwave. Nikkei Asia reported on Monday to have said Foxconn has restarted its Sichuan factory after the worst heatwave in decades.
Apple stock forecast
The interesting take from yesterday was the new low put in for AAPL stock. This is a negative sign, and the rest of the session was fairly calm.
AAPL 15-minute chart
As we can see overall from the daily chart, the summer rally here was huge with gains of over 30%. Apple crested the top trend line, but the breakout failed. AAPL stock has once again set a lower low, which continues the bearish trend in place for the year so far.
There is a gap to be filled down to $154, which looks to be taken out this week. Right now, Apple stock has retraced back down to the 200-day moving average, so expect a bit of a battle here. The overbought signals from the Relative Strength Index (RSI) and the Money Flow Index (MFI) worked perfectly, and now these have retraced back to neutral. This is not a high-probability trade anymore.
I am still short AAPL but I am so from much higher levels, which makes me happy to stick with the position for now. The easy part of the trade is done, and from there it needs to be closely watched. I expect a bounce on Tuesday and possibly into Wednesday as Monday's sell-off did not materialize. Friday will be the next key data point. Closing above $164 is likely a reversal signal, but with such a key report on Friday, I will try to hold out until then.
Apple 1-day chart
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.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.