Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Why Apple share price could hit a roadblock soon

One top US market analyst warned that the massive Apple stock ‘might become a victim of its own success’.

US technology company Apple Inc is the growth stock that keeps on growing, as it continues to see share price gain month-on-month.

The blue-chip stock has added another four percent to share price, since a previous update. It is currently trading at an all-time high of US$280.09 per share as of Monday evening, up from US$264.99 recorded on 05 December.

Just this year alone, the stock has skyrocketed 74%, adding US$473 billion to its market capitalisation in the process.

How much higher can share price go?

However, the bubble might deflate a little in the new year, at least according to JC O’Hara, chief market technician at MKM Partners.

He cautions that the company’s growth momentum could hit a brick wall soon.

‘Momentum is definitely strong, and our concern is that it actually might be too strong, leaving Apple vulnerable,’ O’Hara told CNBC’s ‘Trading Nation’ on Friday, 17 December.

‘If you look at where Apple’s trading, especially compared to its 200-day moving average, we find it’s 28% above that. The average S&P 500 stock is just 5% above its 200-day moving average.’

He also noted that based on historic figures, Apple’s stock tended to be vulnerable in the subsequent months following a peak.

‘While we’re not negative on Apple, we just think it might be vulnerable for a little back-and-filling because it might become a victim of its own success here,’ he added.

Practise trading US stocks with an IG demo account now

Positive US market outlook

So far, however, that has yet to happen, judging by how the tech giant’s share price ended Monday’s market on yet another record high.

Furthermore, with US and China having reached a consensus on trade tariffs, general stock market uncertainty appears to be low in the US at present, based on the Volatility Index.

The index, which measures investors’ market expectations for volatility over the next 30 days on the US S&P 500, currently stands at around 12, several points higher than its historical low.

Many US analysts believe the trade agreement will continue to have a positive effect on the domestic market in general – and this includes companies like Apple.

One of them, Vincent Reinhart, chief economist at Bank of New York Mellon Corp, said the interim trade deal ‘reverses some things that were bad’, namely the tariff increases, which is ‘good for the outlook’.

Learn how you can trade US stocks with an IG demo account now

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.