Failed Breakout Move on AAPL Stock

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Failed Breakout Move on AAPL Stock

Failed Breakout Move on AAPL Stock

Based on the daily chart of share prices for AAPL, the stock of Apple was unable to complete a breakout pattern indicated by the triangle formation started in December last year. The share price retreated upon testing the 540.00 level on Monday, as the US economy added fewer than expected jobs and triggered AAPL weakness along with other US equities.

The latest NFP report showed that the US economy saw a 192,000 increase in non-farm payrolls, lower than the estimated 200,000 gain and not enough to spark an improvement in the economy’s jobless rate of 6.7%. The February figure was revised to show more hiring gains but S&P 500 was unable to sustain its positive rally right after the release.

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AAPL Stock Price Forecasts

Analysts are still counting on an upside break for AAPL stock prices sooner or later, as the tech company gears up to introduce the iPhone 6 perhaps late this year. These announcements typically result to volatility for share prices, as it leads traders to speculate on the features of the product and potential sales.

Take note that AAPL fans usually camp out of Apple stores to line up for the release of the latest tech gadget from the smartphone and tablet giant. Rumor has it that a sleeker and thinner iPhone and iPad are set for release in fall.

At the moment, share prices are still moving above the 50-day simple moving average, indicating that more gains or at least a bit of consolidation is to be expected. MACD is on middle ground, barely offering any strong clues at the moment, while price is still safely above the 200 SMA right around the 500.00 major psychological price support zone.

In the meantime, sentiment for the US economy might push prices around as sales could hinge on how the overall economy is faring. A slowdown in hiring might mean a downturn in spending but the latest NFP release has been promising for economic activity.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com