Apple stock downgraded to Hold/Accumulate

The Apple stock price gained 0.782% on the last trading day (Wednesday, 5th Jun 2024), rising from $194.35 to $195.87. It has now gained 8 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 last trading day the stock fluctuated 1.04% from a day low at $194.88 to a day high of $196.90. The price has risen in 8 of the last 10 days and is up by 1.83% 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, 8 million more shares were traded than the day before. In total, 53 million shares were bought and sold for approximately $10.38 billion.

On Jun 05, 2024, it was reported that Citigroup gave AAPL a "Buy" grade with a "hold" action.

The stock lies in the upper part of a wide and strong rising trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $199.40 will firstly indicate a stronger rate of rising.Given the current short-term trend, the stock is expected to rise 14.10% during the next 3 months and, with a 90% probability hold a price between $202.54 and $227.51 at the end of this 3-month period.

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 $192.58 and $181.92. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, April 19, 2024, and so far it has risen 18.71%. Further rise is indicated until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).

On the downside, the stock finds support just below today's level from accumulated volume at $183.38 and $172.62.There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Apple finds support just below today's level at $183.38. If this is broken, then the next support from accumulated volume will be at $172.62 and $171.37.

In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved $2.02 between high and low, or 1.04%. For the last week the stock has had daily average volatility of 1.14%.

Since the Apple has been rising for 8 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.