AAPL stock is currently in tight consolidation mode, with price moving sideways around the $100/share level. MACD is reflecting a pickup in selling pressure, although it appears that the uptrend for AAPL stock is still intact.
Price is also currently drawing support at the 50 simple moving average, which has held as a dynamic inflection point for trend pullbacks. If AAPL stock price breaks below this area, a sharper correction might take place.
AAPL Stock Estimates
Bear in mind that the consolidation pattern spans from $102.50/share to around $95/share, which suggests that the potential breakout could be roughly of the same amount. A steeper drop could even lead to a test of the 200 SMA, which is a longer-term inflection point.
The recent downgrade by Deutsche Bank on AAPL stock has weighed on share prices but hasn’t been enough to stop the uptrend. The firm downgraded its rating from “Buy” to “Hold” as it doubted whether the recent product launches could keep Apple ahead of its tech competitors.
The latest iPhone 6 model has drawn a lot of flak, as many reported that it breaks when it bends. Apart from that, the recent launch of Apple Pay has been met with plenty of skepticism. Take note though that the company has seen roughly 10 million worth of unit orders for the iPhone 6 and iPhone 6 Plus, with 2 million orders coming from China.
Next up, the company is rumored to launch its newest iPad models this month, although expectations aren’t running so high. Disappointment would likely lead to more losses for AAPL stock, with a potential test of the $90/share level in the cards.
An upside break, on the other hand, could lead to gains until the $105.00/share level, as the path of least resistance for this stock is still to the upside. Stochastic is on middle ground, barely offering any clear clues at the moment.
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