Risks remain on the downside on Apple shares
Technically, Apple’s stock exit from its pennant will be the next signal to watch. An exit from below will be needed to confirm the pennant, which would open the way for another major correction in the title. A return to the lows of the year at around $130 would at least be expected.
In the event of an exit from the top of the flag, it would mean that the buying pressure is starting to regain some ground, but it will take more to justify a long strategy. The stock will need to break above its late October high of around $157 to re-adopt a bullish outlook.
In the long term, the outlook remains bearish due to the growing 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, technology stocks will not be immune to a recession, since this time consumers will not redirect their purchases from services to goods but will simply seek to reduce their spending.