X

Select the account you'd like to open

Waiting for a bullish breakout? A tactical view on Apple

Apple

The macroeconomic headwinds have put tech shares over the brink, with Apple’s shares dropping 17% since 5 May when the Fed triggered a broad equity markets selloff. The Fed meeting’s minutes released this morning did not offer any changes to its stance on the rate hikes trajectory, indicating further 50 basis-points interest rates increase on cards at least in the next two meetings. However, the market participants may hold a different view amid a melting down stock markets and deteriorating economic outlooks.

Apple & S&P 500, Daily (potential bullish break out opportunities at the descending trendline ) 

(Click to see the enlarged chart)

Apple and S&P 500 have a positive correlation in the price movements, where both are testing the key resistance at the descending trendlines, thanks to the dominant market cap of the iPhone maker, and the passive investment methodology. 

From the above charts, we can tell that the S&P 500 is to test the 4,000-mark, while Apple is on the borderline of the downtrend resistance at 142. If the macro-driven selloff takes a breather, Apple may get a chance to break out toward the upside and head back to the next pivot resistance at 150. On the flip side, if the stock turmoil continues, 132 will become pivot support, then heading to the next medium-term support level at 118. 


Disclaimer: CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.