On Wednesday, Apple came within a whisker of setting new all-time highs.
AAPL has made a tremendous recovery from the low $120s.
The FAANG (Fast, Accurate, Innovative, and Global) stocks have been establishing all-time highs.
On Wednesday, Apple shares came close to hitting our aim of new all-time highs, but what’s 16 cents among friends? We’ve been calling this one higher for a while, so you should be our friend. FXStreet first mentioned breaking new highs on June 23 (see here), claiming that the support base has been near $122 since early June. As the volume profile flattened out above these levels, the move increased once AAPL stock broke over $135 and then $137. The acceleration, however, has pushed AAPL into overbought territory on the Relative Strength Index (RSI), which coincides with the Nasdaq and S&P 500 being overbought as well. It’s worth noting that just because the RSI is overbought doesn’t mean prices have to drop for the RSI to drop. The RSI is concerned with the movement’s relative speed. The RSI will decline if prices slow or consolidate. It is, however, a solid indication that things have gotten out of hand.
Apple’s main figures
Price/Earnings (P/E) 32 Market Cap $2.41 trillion Enterprise Value $2.1 trillion
Price/Book
37\sPrice/Sales
EBITDA EBITDA EBITDA EBITDA EBITDA EBITDA EBITDA EBITDA EBITDA EBITDA EBITDA EBIT
Buy $159 at the average Wall Street rating and price objective of $100 billion.
There are a few factors that come to mind that aren’t new, but the market has decided to focus on them now that it’s lost steam. The story is always framed to fit the price movement. On Thursday, the whole market is poor, with European markets falling dramatically as investors worry about the new Delta edition of COVID-19. This is something that has been known for a long time. Europe has been overtaken, Japan has declared a state of emergency, and Australia has imposed regional curfews.
Investors are worried that the record-breaking performance in Q1 2021 will be replicated as earnings season approaches (next week). To be honest, the comparison will be difficult. Apple (AAPL) surpassed analyst projections by 42%, Facebook (FB) by 40%, Google (GOOGL) by 67%, and Amazon (AMZN) by 65% in Q1 2021. As a result, it will be impossible to duplicate the performance.
Seven straight up sessions have occurred in the AAPL stock. Because nothing lasts forever, a phase of retraction is unavoidable. As previously said, this has pushed the RSI into overbought territory.
As long as Apple remains over $135 to $137, the trend will be protected. Due to the lack of volume, the move accelerated above this point. Because of the lack of volume, a fall might escalate quickly, but it should be held back near $135 when volume increases at this level. This is our support zone for the short to medium term. The bullish theme can be exploited here by buying the dip with an appropriate stop, but a break lower signals the bullish theme is over for the time being.
Do you think this article is interesting? Fill out the following survey to provide us with some feedback:/n
Read More
