Apple (AAPL) Stock Price and Forecast: Three reasons why Apple stock will fall on Thursday
Premium|Take advantage of 75% OFF on your first month.
Grab this special offer, it's a 1 year for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 75% OFF!
Grab this special offer, it's a 1 year for FREE deal! And access ALL our articles and analysis.
CLAIM OFFER- Apple is just short of new all-time highs on Wednesday.
- AAPL has rallied from the low $120s in a strong move.
- Big tech FAANG stocks have been setting all-time highs.
Apple stock more or less hit our target of fresh all-time highs on Wednesday, but what is 16 cents between friends? You should be our friend as we have been calling this one higher for some time. On June 23 FXStreet first mentioned taking out record highs (see here), calling the support base at $122 since early June. The move accelerated once AAPL stock broke above $135 and then $137 as the volume profile thinned out above these levels. The acceleration though has now sent AAPL into overbought territory on the Relative Strength Index (RSI), and this corresponds with the Nasdaq and S&P 500 both also being overbought, according to the RSI. It should be noted that the RSI being overbought does not mean prices have to fall in order for the RSI to go back down. The RSI is concerned with the relative speed of the move. If prices slow or consolidate, the RSI will fall. However, it is a good indicator that things have become stretched.
Apple key statistics
| Market Cap | $2.41 trillion |
| Enterprise Value | $2.1 trillion |
| Price/Earnings (P/E) | 32 |
|
Price/Book |
37 |
| Price/Sales | 9 |
| Gross Margin | 0.4 |
| Net Margin | 0.23 |
| EBITDA | $100 billion |
| Average Wall Street rating and price target | Buy $159 |
Why is Apple stock falling today?
A few reasons spring to mind that are not new, but the market has chosen to focus on them now that it has run out of steam. The narrative is always framed to meet the price action. The overall market is weak on Thursday, with European markets sharply lower as investors fret over the new Delta variant of COVID-19. This has been known for some time. Europe is overtaken with it, Japan has declared a state of emergency, and Australia has gone into regional lockdowns.
As earnings season approaches (next week), investors are becoming nervous that the record-breaking performance in Q1 2021 can be matched. In fairness, the comparison is going to be a tough one. In Q1 2021 Apple beat analyst expectations by 42%, Facebook (FB) by 40%, GOOGL by 67% and AMZN by 65%. Therefore, a repeat performance will be difficult.
AAPL stock has witnessed seven straight-up sessions. Nothing goes up forever, so a period of retraction is inevitable. This as mentioned has pushed the RSI into overbought territory.
Apple stock forecast
The trend is still protected as long as Apple remains above $135 to $137. Above here is where the move really accelerated due to the lack of volume. The lack of volume though means a fall can also quickly accelerate but should be held back toward $135 as volume increases at this level. This is our short to medium-term support zone. Buying the dip with an appropriate stop can be used here, but a break lower means the bullish theme is finished for now.
Like this article? Help us with some feedback by answering this survey:
- Apple is just short of new all-time highs on Wednesday.
- AAPL has rallied from the low $120s in a strong move.
- Big tech FAANG stocks have been setting all-time highs.
Apple stock more or less hit our target of fresh all-time highs on Wednesday, but what is 16 cents between friends? You should be our friend as we have been calling this one higher for some time. On June 23 FXStreet first mentioned taking out record highs (see here), calling the support base at $122 since early June. The move accelerated once AAPL stock broke above $135 and then $137 as the volume profile thinned out above these levels. The acceleration though has now sent AAPL into overbought territory on the Relative Strength Index (RSI), and this corresponds with the Nasdaq and S&P 500 both also being overbought, according to the RSI. It should be noted that the RSI being overbought does not mean prices have to fall in order for the RSI to go back down. The RSI is concerned with the relative speed of the move. If prices slow or consolidate, the RSI will fall. However, it is a good indicator that things have become stretched.
Apple key statistics
| Market Cap | $2.41 trillion |
| Enterprise Value | $2.1 trillion |
| Price/Earnings (P/E) | 32 |
|
Price/Book |
37 |
| Price/Sales | 9 |
| Gross Margin | 0.4 |
| Net Margin | 0.23 |
| EBITDA | $100 billion |
| Average Wall Street rating and price target | Buy $159 |
Why is Apple stock falling today?
A few reasons spring to mind that are not new, but the market has chosen to focus on them now that it has run out of steam. The narrative is always framed to meet the price action. The overall market is weak on Thursday, with European markets sharply lower as investors fret over the new Delta variant of COVID-19. This has been known for some time. Europe is overtaken with it, Japan has declared a state of emergency, and Australia has gone into regional lockdowns.
As earnings season approaches (next week), investors are becoming nervous that the record-breaking performance in Q1 2021 can be matched. In fairness, the comparison is going to be a tough one. In Q1 2021 Apple beat analyst expectations by 42%, Facebook (FB) by 40%, GOOGL by 67% and AMZN by 65%. Therefore, a repeat performance will be difficult.
AAPL stock has witnessed seven straight-up sessions. Nothing goes up forever, so a period of retraction is inevitable. This as mentioned has pushed the RSI into overbought territory.
Apple stock forecast
The trend is still protected as long as Apple remains above $135 to $137. Above here is where the move really accelerated due to the lack of volume. The lack of volume though means a fall can also quickly accelerate but should be held back toward $135 as volume increases at this level. This is our short to medium-term support zone. Buying the dip with an appropriate stop can be used here, but a break lower means the bullish theme is finished for now.
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.