Apple Shares Test Triangle Resistance After iPhone 6S Rollout

0
22
Apple Shares Test Triangle Resistance After iPhone 6S Rollout

Apple Shares Test Triangle Resistance After iPhone 6S Rollout

Apple shares are still in consolidation but are currently testing the top of the triangle resistance the day before the new iPhone 6S hit stores. Sales of the newest gadgets are still expected to top analysts’ expectations and reach record highs amid the projected slowdown in demand from China, one of its largest markets.

Price is currently testing resistance at $115/share and might be due for an upside break depending on how the early sales reports turn out. Stochastic is on the move up, indicating that buyers are in play, while the RSI is also heading higher.

The moving averages also appear to be making an upward crossover, an early signal that an uptrend is likely. Recall that Apple shares suffered a sharp selloff more than a month ago, following the slump in global stock markets.

Apple Shares Outlook

A move past the triangle resistance could lead to a climb until the next ceiling at $120/share and onwards to the area of interest at $125/share. Further gains past this point could spur a test of this year’s highs near the $132/share levels.

On the other hand, bleak iPhone 6S sales could spur a break below support at $112/share and a possible downtrend until the previous lows at $92/share, although this scenario seems less likely.

News reports indicated that Apple fans are still lining up outside stores, eagerly anticipating the release of the newest gadgets from the company. Apple shares got a strong boost earlier in the month when CEO Tim Cook unveiled the latest offerings, including a new version of the iPad which has a stylus.

Investors might decide to wait for the actual earnings report from the company to be released sometime next month to gauge current and future performance. Key levels to watch are $112, $115, and $120 as strong moves past these points could indicate directional momentum.

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

SHARE
Previous articleNZDUSD Forex Forecast – Up to Range Resistance or Back to Support?
Next articleUSDCAD Forex Forecast – Pullback to Broken Resistance
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.