- AAPL stock falls again on Wednesday as the sell-off continues.
- Equities remain under pressure ahead of the employment report on Friday.
- AAPL stock also waiting for next week’s iPhone 14 release details.
Apple (AAPL) stock continued its recent run of poor form as the stock once again closed lower on Wednesday. Apple has now registered three straight days of losses as equity markets come to terms with Fed Chair Powell utilizing himself last week. The doveish tilt that the market seemed to imply was firmly rebutted by Powell, and the equity market has been under continued selling pressure ever since.
Apple stock news
Investors are now looking to next week for a catalyst to stem recent losses. September 7 is when most observers expect the iPhone 14 to be released. Details around pricing will be the key aspect, and as ever Wall Street analysts have been coming out with more and more bullish prospects.The latest from Bank of America says a price hike for the iPhone 14 over the iPhone 13 could see a boost to earnings in the region of $0.10 to $0.20 on EPS.
It seems demand for iPhones will remain inelastic in the eyes of Wall Street, while clearly the consumer looks to be shifting to lower-cost goods from what we have seen recently from retailers. iPhones are a luxury good and should see a slowdown in demand based on price hikes and inflationary trends. Margins will come under pressure from rising input costs, and the situation in China looks increasingly bearish. The property sector is beginning to falter alarmingly. The only bullish caveat to add is the potential for massive monetary easing from China. We saw how the loose US policy juiced financial assets during the pandemic, and China may embark on its own financial juicing if the economy continues to decline. We do not think this will be enough to stem earnings compression for Apple though. The strong dollar is another headwind for a firm that does business globally but reports in dollars.
Apple stock forecast
Enough of the long-term prognosis. How are we shaping up for some swing trading? Ok, first take a look at the daily chart. The downtrend continues with failure at the 200-day moving average, a continued sell-off from the overbought Relative Strength Index (RSI) and now support from the 50-day moving average. Below $171 looks bearish.
AAPL daily chart
The 15-minute chart below shows the areas of stability and high volume. Current levels around $158 are seeing stabilization. A move above $162 or below $156 will see further buying or selling pressure, so this range is key to playing a breakout scenario.
The author is short AAPL.