Return of Upside Momentum for AAPL Shares

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Return of Upside Momentum for AAPL Shares

Return of Upside Momentum for AAPL Shares

AAPL shares broke above the consolidation pattern on its shorter-term time frames, which is an early signal that the uptrend could carry on. The stock previously consolidated inside a symmetrical triangle chart pattern and bounced off support from the longer-term exponential moving average on the 4-hour chart.

The shorter-term EMA is still treading above the longer-term EMA on the same time frame, confirming that the bullish momentum is likely to stay and possibly grow stronger. This could push AAPL shares to its previous highs near the $132/share level and perhaps onto new ones.

AAPL Shares Outlook

Risk appetite could be mostly responsible for the behavior of US equities this week, with most investors keeping close tabs on the upcoming FOMC statement for more clues. Data from the US economy has been disappointing in the past weeks, casting doubts that the country could carry on with its ongoing recovery.

With that, the Fed might take the upcoming statement as a chance to reassure market participants that the downturn is only temporary and that economic performance will pickup again soon. If so, AAPL shares could get a stronger boost from improved investor confidence.

On the other hand, a downbeat FOMC statement could mean losses for US shares, as this could hurt sentiment and lead to expectations of weaker profitability for companies. In particular, this could lead to weaker demand and revenue for Apple as lower consumer spending might lead to slow sales for its products.

Upcoming earnings releases could also have a significant impact on US equities, with Apple gearing up for a strong quarterly report for the first three months of 2015. Analysts say that AAPL shares could gain more traction with better than expected earnings data, as sales of its newer products could keep revenues strong. In addition, early orders of its iWatch could add to stock gains.

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