Apple (AAPL) Share Price Influenced by Psychological Factors

FXOpen

The first factor is the news that Warren Buffett is halving his position in AAPL shares. Whether this indicates that the legendary investor foresees the company losing its market leadership or a recession threat, Buffett's authority may create a psychological effect on retail investors and prompt them to sell their shares.

The second factor is the breach of the $200 psychological level. After the strong rise above $200 per share in June, it seemed the price had securely settled above this round number. However, it's not uncommon for breakout tests to occur, stop-loss orders to be triggered, and the supply-demand balance to shift, resulting in price growth. For example, yesterday's price action saw the bulls nearly close a 7% bearish gap.

Today's technical analysis of the AAPL stock chart shows that:

→ Opening at the lows and closing at the highs for the last two wide candles indicates demand activity.
→ Since May, the stock price has been moving within an ascending channel (shown in blue). Yesterday, the price closed near the median line, where it might stabilize.
→ If the bears attempt to resume pressure, pitchfan ray #4 may provide support. As the AAPL chart shows, the stock price found support in the previous three instances, visualized on the chart as days of upward trends with decreasing angle steepness.

Interestingly, CNN Money's Fear & Greed Index showed a further decline in overall market sentiment, moving into the "Extreme Fear" zone on Monday. Would Buffett now follow his famous 1986 advice: "Be fearful when others are greedy, and be greedy when others are fearful"?

According to a survey of 32 Wall Street analysts by TipRanks, 24 recommend buying Apple stock. Their average price forecast for AAPL is $248.96 over the next 12 months.

Read analytical AAPL price forecasts for 2024 and beyond.

Buy and sell stocks of the world's biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Share CFD Trading with FXOpen

Share CFD Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Trade with tight spreads
  • Take advantage of commissions from $1/lot
  • Choose from 4 trading platforms: MT4, MT5, TradingView, or TickTrader
Learn more

Latest articles

Forex Analysis

EUR/USD Breaks 2023 Low

Today’s PMI figures were released and came in worse than analysts’ expectations. The Flash Manufacturing PMI and Flash Services PMI for both Germany and France fell below the 50.0 threshold, indicating that Europe’s economy is slowing down.

Shares

Alphabet Inc. (GOOGL) Shares Drop Over 4.5% in a Single Day

As the chart shows, during yesterday’s trading session, the stock price of Alphabet Inc. (GOOGL), the parent company of Google, declined by more than 4.5%. The drop was driven by regulatory pressure on the company concerning its Chrome

Forex Analysis

Dollar Resumes Gains Amid Weak Rivals and Fresh Economic Data

After a brief correction, the US dollar is back on an upward trajectory. The GBP/USD pair has fallen to 1.2600, USD/CAD has bounced from 1.3940 and is heading towards 1.4000, while EUR/USD is approaching

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.