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AAPL just busted out of a consolidation!

Does this mean the stock is ready for a bounce?

Or are we seeing a fakeout?

Apple Inc (AAPL): Daily

Apple Inc. Daily Equity Chart

Apple Inc. Daily Equity Chart by TradingView

In case you were too busy preparing to trade the top-tier reports scheduled this week, you should know that Apple Inc.(AAPL) might drop a key supplier in favor of producing its own parts.

A report from Bloomberg detailed that Apple might swap out components made by Qualcomm and Broadcomm in favor of making its in-house parts by late 2024 or early 2025.

The possibility of wider margins could favor AAPL, which has already broken above a consolidation on the daily time frame.

The stock shot up all the way to 133.50 yesterday before anticipation of a hawkish speech by Fed Governor Powell weighed on U.S. equities. AAPL formed a Doji-like pattern and capped the day closer to 130.00.

Does yesterday’s spike mean that AAPL bulls are ready to take the stock to an uptrend?

Or will the Doji deter buyers and keep AAPL between the 125.00 – 130.00 range?

Stochastic is favoring more buying as it starts to rise from the oversold area.

On the other hand, the 100 and 200 simple moving averages are pointing to further selling as the 100 SMA widens its gap with the 200 SMA.

The stock’s next direction might depend on risk sentiment. If Powell’s speech and this week’s CPI data hint at further tightening from the Fed, then U.S. stocks could continue to weaken and extend AAPL’s losses.

But if more traders continue their start-of-year buying, then AAPL could complete its consolidation breakout and head for previous areas of interest.

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