Apple shares seem to be having trouble sustaining their long-term climb, as price is stuck in a range visible on the 4-hour time frame. The stock is currently testing the range resistance around $132/share and may be headed back to the bottom at $124/share.
For now, the short-term exponential moving average is treading above the long-term EMA, confirming that the uptrend is likely to stay intact. The long-term EMA could also hold as dynamic support around the $128/share level or the middle of the range.
Apple Shares Forecast
In addition, the short-term EMA seems to be holding as near-term support for the time being, although a downside break might still occur since stochastic is on its way down. This indicates that sellers are in control while buyers are taking a break, keeping price gains in check.
The main event risk for Apple shares and US equity price action this week is the NFP report, which would confirm whether or not the Fed could be able to hike interest rates in September. A strong figure could renew confidence in the US economy and allow stocks to resume their climb while weak data could remind traders that a slowdown is taking place and that the current quarter’s earnings reports might indicate weakness.
An upside break past the $132-134/share area could lead to a climb up to $136/share or possibly until $140/share. On the other hand, increased selling momentum might lead to a downside break of support and a potential selloff until $120/share.
Strong demand for the Apple Watch is currently keeping Apple shares supported, as analysts predict that this could add a huge chunk to the company’s revenues this quarter. In addition, sales of the iPhone and the new Macbook could spur another stronger than expected earnings report.
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