- AAPL stock closes barely unchanged on Monday after some wild swings.
- Equity markets stage a massive afternoon rally to erase huge losses.
- Apple reports earnings after the close on Thursday.
Apple (AAPL) stock followed the wild swings experienced by many stocks on Monday as the equity market did a massive u-turn in the second half of the day. The morning session was ugly with the stock down 3% and things looking bleak ahead of the Fed meeting. However, an afternoon turnaround unfolded, catching many off guard. The reasons were many, but position squaring ahead of the Fed meeting today was a large part of the reason. We also had some SPX option movements based on gamma hedging as 4400 saw a large amount of volume. Apple followed the trend opening and quickly moved down to a low of $154.70, before rallying to close at $161.62. This meant Apple (AAPL) shares lost less than half a percent.
Apple Stock News
Analysts are for the most part bullish on Apple, but Goldman Sachs does generate more attention than most and it reiterated their $142 price target on Apple this morning ahead of earnings on Thursday. Goldman focuses more on the outlook rather than the actual results themselves. This contrasts with Morgan Stanley who last week remained bullish on their earnings outlook with the bank expecting an outperformance on iPhone deliveries for the quarter.
The average analyst expectation for Apple is to post earnings per share (EPS) of $1.89 on revenue of $118.28 billion. Apple has a pretty decent track record of beating analyst estimates, but the last quarter did see Apple miss estimates on the revenue side. Supply chain issues were a problem, and this issue will be closely watched for commentary on the outlook. AAPL has not missed on EPS since April 2016.
Apple Stock Forecast
The move in the first half of Monday broke some key technical levels, notably the support at $157. The next support at $153 remains intact. Strong support remains at $148 from the volume point of control. We have identified the bearish double top and bearish divergence, which gave an extended target of $150. This zone from $148 to $150 is strong support, not only in terms of volume, but also the 200-day moving average is at $148. Apple remains in a downtrend and earnings will now be the dominant theme. $167 is the bullish pivot.
Apple (AAPL) chart, daily
Like this article? Help us with some feedback by answering this survey:
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 edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.