Apple Pulls Back From Fresh Highs

Shares in Apple are trading lower pre-market following a heavy reversal yesterday. The stock hit fresh all-time highs yesterday before profit taking kicked in and saw the stock falling back below the prior 182 high-watermark. Apple stock has seen a mammoth run so far this year, rallying almost 50% off the year-to-date lows. Recently, the stock has benefited greatly from the shift in Fed view. With the market no longer expecting a hike in June, tech stocks have been greenlit for fresh buying. The debt ceiling deal has also been a huge boost for Apple. With the US avoiding an historic default on debt, the economy is set to benefit from an influx of liquidity near-term, helping lift riskier assets like Apple.

Apple Unveils New VR Headset

Apple recently threw its hat into the VR ring, unveiling its new augmented reality headset. The Apple Vision Pro headset, which marks the first significant hardware launch for Apple in a decade, will compete with the likes of the Meta Quest Pro headset. The cost of the headset is much higher than competitor prices and is perhaps one reason why Apple stock was seen falling in response to the announcement. Commentators have also noted the difference in appearance, with the Apple headset said to look more like ski goggles than the other headsets.

Investors Concerns

Investors appear to be baulking at the initial cost and aesthetic differences. However, with Apple enjoying a long history of innovation, bulls say the wider market will eventually catch on, creating plenty of room for further upside in Apple stock.

Technical Views

Apple

The rally in Apple saw the stock briefly breaking to fresh all-time highs this week before reversing lower. For now, price remains above the 176.14 level and the rising trend line off the YTD lows. While price remains above this level, the focus is on a further push higher in line with bullish momentum studies readings. Below there, however, focus shifts to the 167.45 level next.