Apple Shares Testing Short-Term Triangle Support

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Apple Shares Testing Short-Term Triangle Support

Apple Shares Testing Short-Term Triangle Support

Apple shares are stuck in consolidation for the time being, as price is moving inside a symmetrical triangle on the short-term time frames. Investors are having trouble picking a clear direction, thanks to global market uncertainties and speculations of a Fed rate hike in September.

Apple shares are sitting at the bottom of the triangle near the $127.50/share level and might be due for a climb back to the top at $129/share. Further gains could lead to an upside break from the triangle resistance and a prolonged uptrend.

RSI seems to be suggesting that further gains are possible since it is moving north. Stochastic, however, is pointing down and suggesting that selling momentum might pick up and even lead to a downside break of the triangle support.

Apple Shares Forecast

Risk aversion has weighed on financial markets earlier this week when the EU emergency meeting failed to produce a debt deal for Greece. This increases the possibility of a default and an exit from the euro zone, which might set off an even larger mess in the European stock and bond markets.

As for the US, data has been relatively stable, supporting the view that the Fed can be able to hike interest rates by September. More signs of an economic recovery could be positive for US equities, including Apple shares, as these would show that consumer spending and business revenues would stay supported.

In Apple news, reports that the company’s music streaming service will revamp its compensation for artists and employees involved in the 3-month trial of the project could lift shares as it would draw more demand and positive feedback. Paid service will cost $10 a month starting June 30 and could add more revenue for the tech giant in the upcoming quarter.

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.