Equities Watchlist: Is Apple (AAPL) Ready for a Bounce?

AAPL just busted out of a consolidation!

Does this mean the stock is prepared for a bounce?

Or are we seeing a fakeout?

Apple Inc (AAPL): Each day

Apple Inc. Each day Equity Chart by TradingView

In case you were too busy preparing to trade the top-tier reports scheduled this week, it’s best to know that Apple Inc.(AAPL) might drop a key supplier in favor of manufacturing its own parts.

A report from Bloomberg detailed that Apple might swap out components made by Qualcomm and Broadcomm in favor of creating its in-house parts by late 2024 or early 2025.

The potential of wider margins could favor AAPL, which has already broken above a consolidation on the day by day timeframe.

The stock shot up all of the strategy to 133.50 yesterday before anticipation of a hawkish speech by Fed Governor Powell weighed on U.S. equities. AAPL formed a Doji-like pattern and capped the day closer to 130.00.

Does yesterday’s spike mean that AAPL bulls are able to take the stock to an uptrend?

Or will the Doji deter buyers and keep AAPL between the 125.00 – 130.00 range?

Stochastic is favoring more buying because it starts to rise from the oversold area.

Then again, the 100 and 200 easy moving averages are pointing to further selling because the 100 SMA widens its gap with the 200 SMA.

The stock’s next direction might rely upon risk sentiment. If Powell’s speech and this week’s CPI data hint at further tightening from the Fed, then U.S. stocks could proceed to weaken and extend AAPL’s losses.

But when more traders proceed their start-of-year buying, then AAPL could complete its consolidation breakout and head for previous areas of interest.

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