Stocks ended with losses last week. The deep sell-off on Tuesday last week made it difficult for the bulls to break out of the lows. The market outlook is becoming increasingly uncertain, given the heavy inflation and slowing economy.
On Monday (19/09), the S&P 500 Index closed up +0.72%, the Dow Jones Industrials closed up +0.45% and the Nasdaq 100 closed up +0.55%. Stock prices on Monday recovered from early losses and posted modest gains.
Apple closed up over +2% on Monday to boost technology stocks amid signs of strong demand for its new iPhone. Airline stocks also rose amid signs of stronger travel demand. Additionally, homebuilding stocks moved higher after KeyBanc Capital Markets upgraded the sector to overweight from underweight.
The iPhone maker has beaten all odds and raged ahead with exciting product launches. On 7 September, the company held a major autumn event, where it unveiled the iPhone 14 series, along with new Apple Watches and AirPods. The product introductions have boosted a portfolio that has never been stronger and a broader platform.
Technical Analysis
#Apple closed up over +2.5% on Monday, on signs of strong demand for the new iPhone 14 Pro and iPhone Pro Max, with reports saying many Apple stores are out of stock of the new phones, as they are already sold out. Apple said on its website today, that customers who want to buy the new models will currently have to wait until at least October for them to ship. The surprising fact is that the company did not increase the price of the iPhone 14 model.
Technically, the $129.06 rebound had stalled at the third peak of $176.14 and has since retraced to the 50.0%FR level. However, last week’s hot August CPI report buried the prices of tech stocks including Apple and caused it to correct deeper to near the 61.8%FR level. In Monday’s trading, Apple bounced off the lows and closed at $154.52, slightly below its 200-day exponential moving average.
Expectations of a 75bp Fed rate hike today are likely to have an influence on Apple’s price. On the downside, a move below $148.35 support is likely to test the $142.10 support price before moving further to the downside. However, a move above the 200 EMA, $164.26 resistance will likely be waiting to be tested.
Broadly speaking, since the stock split in August 2020, the price of this asset is still moving positively. The lowest price recorded was at $103.10 three weeks into the stock split. And since then, the price continued to rise until it reached $182.87 in January 2022, before experiencing its first correction to $129.06 last June.
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Ady Phangestu
Market Analyst – HF Educational Office – Indonesia
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