By Sam Boughedda
According to a BTIG analyst, Apple's (NASDAQ:AAPL) risk-reward at current levels "looks poor."
The analyst told investors in a note Friday that while the tech giant's stock could "continue to grind higher into its 7/28 EPS and even tag its 200 DMA," there are a couple of things that stand out and make them believe the stock has "likely seen the bulk of this counter-trend rally."
"AAPL is up ~20% from its June lows. This is almost the exact percentage same move that it had from mid-March lows to its late-March highs. It's printing a 10 of 10 on Bloomberg candle sessions today, a measure of trend exhaustion," said the analyst. "The last time it saw this was March 28th, two days before it peaked. Daily stochastics are also as overbought as they have been since that late March rally."
Despite declining 13.4% in 2022, Apple shares have climbed recently, gaining 14.4% in the last month.
It was reported by Bloomberg earlier this week that the company intends to slow hiring and spending growth in some divisions next year to manage the current economic climate.