Risks remain on the downside for Apple stock
Technically, Apple’s stock exit from its pennant will be the next signal to watch. A bottom exit would be needed to confirm the pennant, which would open the way for another major correction in the title. A return to the year’s lows of around $130 would at least be expected.
In the event of an exit from the top of the flag, it will mean that the buying pressure starts to regain some ground, but more is needed to justify a long strategy. The stock will need to break above the late-October high of around $157 to regain a bullish outlook.
In the long term, the outlook remains bearish due to the increasing risk of recession. A recession in the US and European economies is almost certain, which should put pressure on risky assets. Unlike the covid crisis, tech stocks will not be immune to a recession, as this time consumers will not redirect their purchases from services to goods, but will simply seek to reduce their spending.