Apple Inc. (AAPL)

Apple stock forecast: buy or sell

Apple stock outlook

  • Apple merely moved a 0.36% after making new highs today
  • The price is currently above the upper Bollinger band, which is usually an indicator of a near-term correction
  • Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. It also sells various related services.
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Important:
The opinions written in this article are personal and not recommendations for you to buy or sell shares. The author of this report does not have any knowledge of the particular scenarios of the reader, his or her finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are published for education motives only

Apple stock chart overview

Should I buy Apple stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is AAPL stock a buy?

In the current situation of Apple there is not any eligible buy setup. This doesn't mean we expect a selloff for AAPL in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Apple stock?

When you own a stock with some profit, it's really hard to decide the correct moment to sell and get your profits. Trading strategies give us the ability us to avoid rash decisions based on our emotions or the noise surrounding the market. We like very simple setups to guide us on when is a good moment to sell a stock. Be aware that these setups should not be used for selling short Apple stock

As a golden rule, you must never mantain a trading operation that results in losses greater than those expected at the time of the buy. The timing to sell your stock must always be ruled by the stop-loss (automatic or manual)

Is it time to sell Apple stock?

In the current situation of Apple there is not any eligible sell setup, so Apple stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell Apple stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 21 ratings were published for Apple. General sentiment is bullish, with 15 out of 21 publishing positive outlooks

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Apple ratings

Brokerage firmRating
Jun 10th, 2020
Deutsche Bank Strong buy
Jun 10th, 2020
HSBC NeutralNeutral
Jun 10th, 2020
JPMorgan Chase & Co. Strong buy
Jun 11th, 2020
Bank of America Strong buy
Jun 11th, 2020
Wells Fargo & Co BuyBuy
Jun 16th, 2020
Citigroup BuyStrong buy
Jun 16th, 2020
Wedbush Buy
Jun 17th, 2020
Royal Bank of Canada Buy
Jun 19th, 2020
Jefferies Financial Group NeutralStrong buy
Jun 19th, 2020
Wedbush Strong buy
Jun 22nd, 2020
Cowen Buy
Jun 23rd, 2020
Credit Suisse Group Neutral
Jun 23rd, 2020
Deutsche Bank Strong buy
Jun 23rd, 2020
Goldman Sachs Group Strong sell
Jun 23rd, 2020
Loop Capital Neutral
Jun 23rd, 2020
Oppenheimer Strong buy
Jun 23rd, 2020
Robert W. Baird Buy
Jun 23rd, 2020
Sanford C. Bernstein
Jun 23rd, 2020
UBS Group Strong buy
Jun 25th, 2020
Wedbush Buy
Jun 26th, 2020
Barclays Neutral

Technical analysis

AAPL at All-time Highs

Today, Apple hit new all-time highs (ATH) again at $385.27. Stock smashed new all-time highs 3 times in the last 10 sessions

SMAs overview

Moving averages are tools for traders to gauge stock direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

Supports and resistances

Traders use supports and resistances to find price points in the stock price action that may work as barriers, containing the price of a stock to move up or down. Supports are levels where the price may find support as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down this level, it is likely to continue declining until meeting another support level. On the contrary, resistances are where the price tends to find a curb as it moves up. In the same way, this means that the price is more liable to "bounce off" at this level, and if it finally breaks this level, it will rally more easily until it meets the next resistance

Price is at all-time highs and there are not upper resistance levels.

The current support levels are:

  • S1: $326.34 (-14.73% below)
  • S2: $326.19 (-14.77% below)
  • S3: $300.69 (-21.44% below)
  • Bollinger bands

    The so-called Bollinger bands are a popular practice introduced by John Bollinger. Fundamentally, the Bollinger Bands are lines that fluctuate around a moving average, varying the distance from the bottom to the top depending on market volatility. They are usually drawn by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    When the price moves out of the band (above the upper line or below the lower line) it tells that the price action is currently maintaining a very strong trend and therefore can correct the trend to the average. In this case, the price is over the upper band, which should mean a possible short-term corrective movement (at least) until it is below the band

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. Its objective is to map the current and previous strength or weakness of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI moves from 0% to 100%. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by stock traders

    RSI crossed up the 70 level today, with a value of 72.81. Contrary to what many investors may think, the fact that the Relative Strength Indicator (RSI) value is in the overbought zone does not in any way imply a sell point, as stocks can climb during several weeks being above 70

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    Earnings and financials

    Apple Inc. (AAPL) published quarterly earnings of $2.55 per share, enhancing the Wall St consensus estimate of $2.25 per share. This Q1 report means an earnings surprise of 13.33%. Forecasted turnover for this quarter was $54.9 billion but Apple slightly enhanced by 6.21%, reporting $58.3 billion.

    This compares to earnings of $2.46 per share same quarter last year, so reported EPS means an increase of 3.66%. Looking at turnover, figures merely changed compared to $58.0B year over year.

    Apple is posting quarterly financial report on late next July. Forecasted earnings per share (EPS) for this quarter is $2.00. If you hold or you are planning to buy Apple stock, be vigilant as the financial reporting day usually has a very high volatility, and price can soar and sink with exceptionally low liquidity and not honouring your buy or stop-loss orders. You can probably uncover more information about the earnings conference call and the financial reports on the Investor Relations section of its website: http://www.apple.com.

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