After its strong rally in the past couple of months, AAPL is finally showing signs of retreat on its daily time frame. Market sentiment took a hit, taking down US and global equities in recent trading, when geopolitical tension flooded the airwaves.
Yesterday, reports of a Malaysian Airlines plane crash in Ukraine turned the markets’ focus back to the conflict between Ukraine and Russia, reminding market participants that the tension isn’t over. This was followed by news that Israel sent out its ground troops to take out tunnels installed by militants in Gaza for launching missile attacks. Both of these reports turned out to be very negative for risk sentiment, weighing on riskier assets like equities and AAPL stock.
AAPL Stock Forecast
With that, AAPL could continue to sell off until the next visible support level, which is right around the previous area of interest at $93.00/share. A deeper correction could last until the 50 simple moving average (SMA), which might hold as dynamic support for the pair. An even sharper selloff could lead to a test of the longer-term 200 SMA.
Bullish momentum has been very strong for AAPL ever since the company announced its stock split earlier this year. This was sparked by a management decision to allow more traders to hold on to AAPL shares and limit barriers to entry in the market.
Apple shares could continue to draw support from strong market interest, especially as the company moves closer to launching its next set of gadget and software upgrades. The iPhone6 is expected to be launched in October, along with new iOS software.
However, should the risk off sentiment hold on for much longer, more traders might choose to liquidate their AAPL holdings and move their money to safe-haven assets like gold and the U.S. dollar.
To contact the reporter of the story: Jonathan Millet at email@example.com