AAPL stock could make a quick selloff from its recent uptrend, as a double top formation can be seen on its 4-hour chart. Price has failed in its last two attempts to break past the $132/share level and has retreated to support at the long-term exponential moving average on the same time frame.
For now, the moving average is holding as a dynamic support zone as it has done so in the past. Stochastic is moving up from the oversold area, indicating a pickup in buying momentum and suggesting that price could be in for gains again.
AAPL Stock Forecast
If upside momentum is sustained, AAPL stock could make another attempt to surge past the previous highs. On the other hand, if sellers take over, the share price could break below the moving average and the neckline of the double top. This could suggest that a short-term reversal is underway.
The next support for AAPL stock is located at the $120/share level, which is an area of interest that has held as resistance in the past. Further losses past this point could lead to a test of the next floor around $112/share.
The path of least resistance is still to the upside though, as the latest jobs release from the US indicated that the economy is still on track to recovery. The April NFP reading came in line with market expectations and was enough to bring the jobless rate down to its lowest level since the onset of the financial recession, indicating that a sustained recovery and that Fed tightening is likely.
In addition, the latest earnings report from Apple showed stronger than expected results, confirming that the company is in for a strong performance throughout the year. Sales of its new wearable devices could add to company revenues and profits, leading analysts to maintain a buy rating for the stock.
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