Apple shares have been on a strong uptrend in the past few months, as stock prices have traded close to the $100/share level. However, it appears that a market correction may need to take place before buying momentum is sustained.
Prices of Apple shares are now pulling close to the $95/share area, which is just above the 50 simple moving average. This dynamic inflection point hasn’t been tested as support in the past months but may hold as a floor for any near-term selloff. A break below this level, on the other hand, may lead to a test of the 200 simple moving average which is near $80/share at the moment.
Apple Shares Outlook
Take note though that price has recently gapped down, indicating a sudden influx of sellers of Apple shares. At the same time, MACD is heading down, indicating a pickup in selling momentum. RSI is also heading lower, which means that sellers are in control of price action in Apple shares in the meantime.
Another potential support zone is the $90/share mark, which appears to have acted as a support area in the past.
The company is rumored to launch its iPhone6 in October this year and the anticipation is leading to buying pressure for Apple shares. However, the prospect of disappointment is also high and this might lead to a larger correction for the stock price.
Other devices rumored to be released then are the iWatch and next generation tablets. Also expected are the launch of new iOS and OSX operating software.
Further rallies for Apple shares might take the price up to $100/share at which another pullback might take place. Another rally past that point could reach until $105/share and beyond.
To contact the reporter of the story: Jonathan Millet at email@example.com