AAPL Shares Ready to Bounce from Support – August 11, 2014

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AAPL Shares Ready to Bounce from Support - August 11, 2014

AAPL Shares Ready to Bounce from Support - August 11, 2014

AAPL shares seem to be drawing buying interest at its current levels, as it is consolidating above a key support area. The price is hovering around $94.75/share, which is around the 50 simple moving average, which could hold as a floor for the recent selloff.

Take note though that the MACD is still moving lower, which means that there’s enough selling pressure to take AAPL shares a bit lower from its current levels before the uptrend resumes. Drawing a short-term trend line on the recent pullbacks from late May this year shows that the rising support zone is also being tested at the moment.

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AAPL Shares Outlook

RSI is on the midway mark, indicating that the selling pressure is waning. Further declines for the oscillator could mean that selling might pick up steam and push AAPL shares to the next support area at $90/share soon.

A rally from the current levels could lead to a test of the $98/share area, which is around the previous highs. Stronger buying momentum could even lead to a climb to $100/share for AAPL shares. After all, anticipation is building for the release of the iPhone6 this fall and another batch of software upgrades. New iPad and iPod models are also expected.

Disappointment for the release could lead to a sharp selloff, possibly until the next long-term support at the 200 simple moving average, which is around the $81/share level for now. However, this appears to be an unlikely scenario as AAPL shares have been strongly supported after the company announced a stock split earlier this year.

Take note that the company bought back $5 billion worth of its stock as the earnings report came in stronger than expected for the second half of the year. This indicates that the company has positive prospects and is optimistic about stock performance for the rest of the year.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com