14-day Premium Trial Subscription Sign Up For FreeGet Free

Apple stock downgraded to Hold/Accumulate

StockInvest.us, 2 months ago

Apple

The Apple stock price gained 1.96% on the last trading day (Friday, 2nd Jul 2021), rising from $137.27 to $139.96. , and has now gained 6 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. During the day the stock fluctuated 1.64% from a day low at $137.75 to a day high of $140.00. The price has risen in 7 of the last 10 days and is up by 7.28% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 27 million more shares were traded than the day before. In total, 79 million shares were bought and sold for approximately $11.01 billion.

UBS Group is very positive about AAPL and gave it a "Buy" rating on June 30, 2021. The price target was set to $155.00.Over the last 30 days, this security got 5 buy, 0 sell, and 4 hold ratings.

The stock has broken the horizontal trend up. Breaks like this are often followed by swift and strong movements, and any correction down to the breakline at approximately. $135.46 is considered to be a "second chance" to hit a potential runner. It is, however, important that volume does follow the price as false breaks may appear and it may move back into the horizontal trend. Based on the rectangle-formation theory the stock is predicted to reach $147.73 sometime during the next 3 months.

Apple

The Apple stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $135.97 and $129.23. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Wednesday, May 12, 2021, and so far it has risen 14.00%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 months Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal.

Apple finds support from accumulated volume at $133.48 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $2.26 between high and low, or 1.64%. For the last week, the stock has had a daily average volatility of 1.39%.

The Apple stock is extremely overbought on RSI14 (80). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.Since the Apple has been rising for 6 days in a row, the risk over the next couple of days has increased. As we cannot be certain with regards to the size of the reaction, we urge caution.

Apple holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.

Check full Apple forecast and analysis here.