- Apple stock sets a new all-time high close on Tuesday.
- AAPL up despite broad market sell-off as Powell trash talks.
- Apple stock is up again in Wednesday's premarket as momentum creates more momentum.
Apple (AAPL) stock surged on Tuesday despite a market meltdown created by Fed Chair Jerome Powell. Powell is usually a friend to the markets, but he stuck the boot in on Tuesday as the monster he has created with pumping and printing appears to be getting out of control. Inflation is rampant in the US and Europe, and it does not look too transitory. The Fed finally appears to have come to that realization and now needs to run a catch-up play with the inflation train. All this helped equities dump once again on Tuesday with the Nasdaq and S&P 500 both down over 1.5%. Apple though surged to an all-time high close of $165.30 and a gain of over 3% on the day. This amounts to a net outperformance of nearly 5% versus the main indices.
Apple (AAPL) graph, 15-minute
Apple (AAPL) stock news
The catalyst for the strong outperformance and move to all-time highs for Apple stock is not clear. Apple is a huge cash generative stock, so it does have some defensive qualities in times of market stress. However, Apple has also been affected by supply chain issues recently and the dreaded semiconductor shortages. Apple users are strongly loyal to the brand, and that should enable it to pass on any cost increases in an inflationary environment.
We also note yesterday a report from AppleInsider.com stating that Apple iPad sales in Western Europe were ahead in the third quarter of 2021, while other brands lost ground. DigiTimes Asia also ran an article yesterday stating that iPhone sales were strong in China for October. "Strong unit sales of the new iPhone 13 already boosted Apple's share of China's smartphone market to over 20% in October, up from less than 5% in September, according to figures from the China Academy of Information & Communication Technology (CAICT)."
Apple (AAPL) stock forecast
Now we definitely need Apple to push on and avoid the dreaded double top. It feels strange to say that in such a strong performance, but we have one currently clearly identifiable on the daily chart. Double tops are strongly bearish signals.
To cancel it out Apple stock needs to power on to $170. On the flip side, an inverted head-and-shoulders pattern is also showing. The head is the dip on November 26 and the double tops are the two shoulders. An inverted head and shoulders is bullish. Which one is going to win? If only it were that easy. Knowing the potential is half the battle.
Breaking toward $170 would set a breakout target nearer $180, and then the lure of $200 before year end would be powerful. The target of a double top would be the size of the valley between the two tops. In this case it is $9, so a target of $147 seems appropriate. As it happens, $147 is a huge volume profile and strong support. $200 is a big call, but seasonality and the Christmas rally are powerful factors in the performance of the S&P 500 historically.
AAPL 1-day chart
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 stays below 1.1100, looks to post weekly losses](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/european-euro-coin-on-top-of-american-dollar-bill-11292130_XtraSmall.jpg)
EUR/USD stays below 1.1100, looks to post weekly losses
EUR/USD continues to trade in a narrow range below 1.1100 and remains on track to end the week in negative territory. Earlier in the day, monthly PCE inflation data from the US came in line with the market expectation, failing to trigger a reaction.
![GBP/USD struggles to find a foothold, trades near 1.3150](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-157771037_XtraSmall.jpg)
GBP/USD struggles to find a foothold, trades near 1.3150
GBP/USD stays on the back foot and trades in negative territory at around 1.3150 on Friday. The US Dollar holds its ground following the July PCE inflation data and doesn't allow the pair to stage a rebound heading into the weekend.
![Gold retreats toward $2,500 ahead of the weekend](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/gold-bars-50657756_XtraSmall.jpg)
Gold retreats toward $2,500 ahead of the weekend
Gold stays under modest bearish pressure and declines toward $2,500 in the American session on Friday. The 10-year US Treasury bond yield edges higher toward 3.9% after US PCE inflation data, causing XAU/USD to stretch lower.
![Week ahead – Investors brace for NFP amid Fed rate cut speculation](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Employment/NFP/america-back-to-work-gm178972493-25143312_XtraSmall.jpg)
Week ahead – Investors brace for NFP amid Fed rate cut speculation
Here comes another NFP week, with investors eagerly awaiting the results as they try to discern the size and pace of the Fed’s forthcoming rate cuts. The weaker than expected July numbers triggered market turbulence, instilling fears about a potential recession in the US.
![Easing Eurozone inflation to back an ECB rate cut in September](https://editorial.fxstreet.com/images/Macroeconomics/Countries/Europe/Eurozone_countries/Eurozone/eu-flags-flying-at-the-european-commission-building-brussels-belgium-24759579_XtraSmall.jpg)
Easing Eurozone inflation to back an ECB rate cut in September Premium
Eurostat will publish the preliminary estimate of the August Eurozone Harmonized Index of Consumer Prices on Friday, and the anticipated outcome will back up the case for another European Central Bank interest rate cut when policymakers meet in September.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.