Apple stock could rebound in the short term but the Fed will be decisive on Wednesday
Apple (AAPL) stock price could rebound in the short term according to technical analysis. The stock with the second largest market capitalization in the world (after Saudi Aramco) has formed a “hammer” pattern, which is characterized by a short body at the upper end of a candle, with a long lower wick. This pattern signals a bullish reversal as it forms after buyers take the lead in a session that started sharply lower.
This is a technical signal in favor of a bullish reversal in the short term and could be supported by the Fed on Wednesday. Indeed, although the FOMC should remain very hawkish by raising its rates again by 75 basis points, operators’ expectations are probably too high since the probability of a larger rate hike is 21%.
It seems unlikely that the FOMC will raise rates by more than 75 basis points on Wednesday, which could therefore trigger a renewed appetite for risk among market participants in the short term.
However, the rise in rates will not be the only determining factor for the markets. Investors will also be keeping a close eye on new FOMC projections, including those on inflation and the neutral rate, and Jerome Powell’s pressure conference.
Apple (AAPL) stock price daily chart – key levels