Apple shares might make another attempt to break past the current resistance around $132.50/share, signaling further upside momentum for price action. The stock recently bounced off support at the short-term exponential moving average on the 1-hour time frame, reflecting a return in buying pressure.
In addition, the short-term EMA is treading farther away from the long-term EMA on the 1-hour chart, suggesting stronger momentum towards the range resistance and a potential upside break. Stochastic is also pointing up, confirming that buyers are in control.
Apple Shares Forecast
Apple shares have been forming slightly higher lows, confirming that investors have become increasingly bullish on the stock. A break past the $132.50/share resistance area could spark a move up to the $140/share level later on.
On the other hand, if the previous highs continue to hold as resistance, Apple shares could fall back to the range support at the $124/share level, slightly below the longer-term EMA. Sustained losses beyond this floor could signal that a longer-term selloff is underway.
The path of least resistance is still to the upside though, as the company recently released a strong earnings report for the first quarter of the year and faces stronger prospects in the current quarter. Sales of its iPhone units have grown and analysts expect that the Apple Watch could contribute more to revenues.
In addition, the US central bank’s confirmation that a rate hike won’t take place in June could keep consumer spending and business investment strong in the next few months. After all, policymakers would like to see stronger signs of progress before deciding to tighten monetary policy. This should keep consumers willing to spend more on gadgets and computers, such as the iPad or the new Macbook.
Note though that volatility is expected to tick lower in the next few months as the summer season kicks in, also suggesting the possibility of further consolidation for Apple shares.
To contact the reporter of the story: Jonathan Millet at firstname.lastname@example.org