Can AAPL stock extend its gains? The share price has just reached the $108/share major psychological barrier and may be due for profit-taking, which could spark a quick correction in prices. If so, AAPL stock could pull back to the broken resistance around the $104/share mark.
MACD is still moving higher, which suggests that there’s a bit of upside momentum left. However, the latest daily candle turned out to be a doji, which is a classic reversal signal. RSI is almost in the overbought territory but hasn’t quite crossed down yet, which means that buyers could keep trying to push the pair higher from here.
AAPL Stock Outlook
The risk-on market environment is currently keeping US equities supported, among which is AAPL stock. This is because the FOMC just shifted to a more hawkish stance, confirming that the economy is seeing strong improvement and that they may be on track to hike interest rates early next year.
As for the company itself, strong demand for the iPhone 6 and iPhone 6 Plus are keeping shares supported. This could lead to a strong break past the $108/share mark, as more devices are purchased ahead of the Thanksgiving and Christmas holidays. Further gains could see AAPL stock at the $110/share level before the end of the year.
Using a Fib tool on the latest swing high and low indicates a potential retracement zone around the $102/share to $104/share levels, which might serve as a line in the sand for any short-term selloff. A drop below this region, however, might indicate that a reversal is taking place.
If that happens, a sharper decline to the next area of interest at the $100/share level might take place for AAPL stock, although the path of least resistance for this share is to the upside.
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