Apple shares are showing nonstop buying momentum, as the stock has barely retraced on its recent climb to the $114.00/share area. RSI is already indicating overbought conditions though, along with MACD also reaching its peak.
A quick retracement could lead to a test of the $110/share area of interest or a move back to the 50 SMA support around $105/share. However, if buying pressure remains this strong until the end of the year, Apple shares could be on its way to $120/share.
Apple Shares Outlook
Strong demand for the latest gadgets from Apple, which include the iPhone 6 and iPhone 6 Plus, are sustaining the rally for Apple shares. Demand could still pick up towards Thanksgiving and the December holidays, which should be positive for stock prices. At the same time, the strong surge in risk appetite is also supporting US equities.
Data from the US economy has been impressive so far, with headline and core retail sales marking a 0.3% rebound for the month of October. This has been followed by a release of stronger than expected consumer confidence data from the University of Michigan, hinting that the jump in spending is likely to carry on in the next months.
New developments are also looking promising, as Apple Pay stats seem to be indicating a revolutionized way of mobile payments. For now, the company is still gaining support of retailers but it already seems to have been patronized by consumers.
Apart from that, Apple recently added UnionPay to its list of accepted credit cards. This is China’s largest bank network, which might mean more payments through the App store and more support for Apple shares. After all, Apple still has a strong following in China despite the numerous competitive brands in the country.
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