Apple Rally Picks Up Again

Apple shares were seen rallying back up towards all time highs yesterday before softening once again and now trading a touch lower pre-market. The stock has been buoyed recently by the shift in Fed expectations with traders now looking for the Fed to hold off from a further rate hike this month. Additionally, the avoiding of a US debt default has also been a key supporting factor for the stocks. This macro-backdrop has been a clear platform for stocks generally, particularly tech stocks and Apple stockholders are currently riding the wave.

Support From Headset Release

The stock is also seeing a bullish shift in sentiment on the back of the release of the Apple VR headset announced earlier this month. This new hardware launch has been hailed as potentially game changing for the company and the market as a whole. Given the surging demand across this space, this new product launch looks likely to continue to drive bullish sentiment in Apple stock.

UBS Downgrades Apple

However, there are those suggesting the bull run in Apple has run too far. UBS put out a note this week downgrading Apple to a neutral form a buy, expecting a pullback over H2 due to softer iPhone demand. The bank also notes that the stocks is trading well above its value metrics, making it a good candidate for a pullback.

Technical Views

Apple

The recent correction lower has seen Apple finding fresh demand at the ring trend line off YTD lows. Price is now trading back above the 182 level and looks set to continue higher near-term in line with bullish momentum studies. To the downside, 176.14 remains the key support to watch with a break below there needed to signal any shift in trend.