Apple shares snapped its recent winning streak upon encountering resistance around its yearly highs at $132/share. If this continues to keep gains in check, prices could fall back to the bottom of the range around $124/share and possibly move sideways in the coming months.
Stochastic is indicating overbought conditions but the oscillator hasn’t crossed down to indicate a return in selling pressure just yet. However, RSI is starting to turn lower, which could reflect that a selloff is possible.
For now, the 100 SMA is above the 200 SMA on the longer-term charts, suggesting that the uptrend might still be able to carry on at some point. However, Apple shares might need to pull back from its recent climb and might find support at the 100 SMA around the middle of the range or $128/share.
Apple Shares Forecast
US equities edged lower in the New York trading session, as earnings figures from some tech companies such as IBM and United Technologies fell short of market expectations. After the bell, Apple predicted lower fourth quarter earnings data, which led to a sharp selloff for Apple shares.
Nonetheless, the company showed a report indicating that net profit leapt almost 40% in April-June but iPhone sales were weaker than expected and sales forecasts also fell short. This spurred a similar selloff among other smartphone and tech gadget companies in Asian equities.
Apple posted earnings of $10.7 billion on $49.6 billion in revenue, edging past analyst projections of $10.3 billion in profit and $49 billion in revenue. The company was also able to beat its own estimates, which placed revenue at $46 billion to $48 billion and gross margins at 38.5 percent to 39.5 percent.
“We had an amazing quarter, with iPhone revenue up 59 percent over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch,” Apple CEO Tim Cook.
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