AAPL shares gapped up last week after the FOMC gave a more upbeat assessment of the US economy then showed sustained buying momentum after the earnings release. The report indicated better than expected results, allowing AAPL shares to test its previous year highs near the $120/share level.
MACD is still moving up, which means that buyers still have enough energy for more gains. This could spark a strong break past $120 share and possibly lead to gains until $125/share or higher. RSI is still climbing but is nearing the overbought zone, which means that a correction might take place soon.
AAPL Shares Outlook
The Apple earnings report released last Friday showed that the company sold 74.5 million iPhones during the last quarter of 2014, as consumer spending picked up during the Thanksgiving and Christmas holidays. Apart from that, the company holds $178 million in cash and liquid investments, which could allow Apple to make more acquisitions later on.
In addition, sales in China marked a 70% jump during the period, paving the way for a larger market overseas. The company earned an $18 billion profit on $74.6 billion in revenue, more than any US company had ever earned in history.
With that, the path of least resistance for AAPL shares is to the upside, although this could still be dependent on risk sentiment. Talks of Fed rate hikes later on this year could undermine lending and spending, which might then limit the company’s growth. Apart from that, no new products are expected to be unveiled this year, which might mean weaker sales figures.
Should AAPL shares be unable to sustain their climb, price could still find support at the $107/share area, which has held so far this year. This is also close to the 50 simple moving average, which has acted as dynamic support and is still moving above the longer-term 200 SMA.
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