Apple Shares Bouncing Off Short-Term Triangle Support

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Apple Shares Bouncing Off Short-Term Triangle Support

Apple Shares Bouncing Off Short-Term Triangle Support

Apple shares could be in for a few gains this week, as support at the short-term descending triangle held last week. Price could gap lower this week as well, thanks to ongoing uncertainty in the financial markets.

If so, a test of the support at $125/share level might take place once more. Stochastic is pointing up, indicating that Apple shares might still be able to stay supported in the near term while RSI is also suggesting that buying momentum is present.

However, the 100 SMA is moving below the 200 SMA at the moment, which suggests that a longer-term downtrend might be forming. A rejection at the top of the triangle could lead to a sharper decline and a potential downside break from the triangle support.

Apple Shares Outlook

News that Greeks voted against further austerity and the current bailout proposal in the weekend’s referendum is currently weighing on global equity markets, including US shares. Prices could undergo further selling pressure in the coming days if the Greek government officials and EU leaders still can’t come to terms when it comes to a reform plan for the country.

Rumors that Apple is gearing up to offer the iPhone 6s soon is currently keeping Apple shares supported for the time being, as investors price in the potential revenues that this gadget could bring. So far, the reception for the Apple Watch hasn’t been as positive, as with other wearable technology.

According to Digitimes, the company’s primary contract manufacturers Pegatron and Foxconn have started receiving shipments of components for the “iPhone 6s” from sub-assemblers and suppliers. The publication considers that the company would start selling the new iPhone in September, and could reach 50 million of them before ending this year.

In addition, options for Apple shares are currently being offered and this could drive up demand for the stock.

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com

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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.