While European stock markets are experiencing difficult times and are retreating from their highs by around 5%, American markets continue to sail towards annual highs. It seems that they have no intention of starting even a very short retracement. What will Wall Street do next week? We remind you that our annual red setup will expire on June 27th and prices could reach it with a maximum.
Apple on top of the World
Apple Inc shares rose significantly after the annual WWDC event, where the company unveiled several new software features. Apple has surpassed Microsoft Corp in terms of market capitalization, once again becoming the largest company in the world with a capitalization of $3.325 trillion, compared to Microsoft’s $3.264 trillion.
The company had already achieved this distinction in 2011, maintaining it for much of the decade, with brief surpasses by Microsoft in 2018 and 2021. Microsoft’s increase in value in 2023 and 2024 was largely due to its adoption of AI. NVIDIA Corp also saw a notable increase, becoming the third largest company in the world with a capitalization of $3.108 trillion.
During the event, Apple announced a partnership with Microsoft-backed OpenAI to integrate ChatGPT into its devices, enhancing Siri with generative AI. Investors have also enthusiastically welcomed other new features of Apple devices, such as home screen customization and phone call recording.
The graphs
The shares have moved in the $214.24 area in recent days. Since the beginning of the year, they have marked the minimum at 163.85 and the maximum at 220.20. The Alligator Indicator on the daily and weekly time frames is set to rise with short and medium to long term bullish divergences on our oscillators. This suggests that we could see an acceleration in prices in the short term. There is a certain overbought to be noted. The holding of the 163.85 area in the coming weeks/months (minimum of the seventh of April 15th) is the level that from a graphic point of view will maintain the long-term upward trend.
The average recommendations of analysts as reported by specialized magazines are as follows:
Accumulate with target at 204.1. So, the analyst consensus believes that the shares are currently overvalued by about 4%.
Graphics studio on Microsoft
The shares have moved in the $441 area in recent days. Since the beginning of the year, they have marked the minimum at 163.85 and the maximum at 220.20. The Alligator Indicator on the daily and weekly time frames is set to rise. There is some overbought and short-term negative divergences to note. The holding of the 387.33 area in the coming weeks/months (minimum of the seventh of April 22nd) is the level that from a graphic point of view will maintain the long-term upward trend.
The average recommendations of analysts as reported by specialized magazines are as follows:
Buy with target at 488.4. Thus, the analyst consensus believes that the shares are currently undervalued by about 10%.
What will Wall Street do next week?
The trading day of June 14 closed at the following prices:
Dow Jones
38,589
Nasdaq C.
17,688
S&P500
5,431.
The trend is still bullish. Start of a probable bearish phase with daily and then weekly closings lower than:
Dow Jones
38,245
Nasdaq C.
17,049
S&P500
5,321.
This is what matters in our opinion, we consider the rest to be mere speculation. We will see what happens and what Wall Street does next week by following the price charts.
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