AAPL shares seem to be having trouble breaking past the previous year highs around $120/share level, as a reversal candlestick has previously formed. As you can see on the daily chart, price made a doji and the succeeding candle closed below its low.
MACD is still climbing, which means that there could be enough buying momentum left for another push higher. If so, AAPL shares could be on its way to establish new highs, especially if risk appetite stays supported.
AAPL Shares Forecast
RSI is also moving up, indicating that buyers are in control of price action for now. However, if sellers take over, price could head back to the recent support area at the $106/share level later on.
For now, the shorter-term 50 simple moving average is moving above the longer-term 200 SMA, which means that the uptrend could stay intact. The 50 SMA might also act as near-term support in case price pulls back.
A move back to the previous support could create a double bottom pattern, which could mean that further losses are likely. This could be spurred by a downturn in risk appetite, which generally leads to weaker demand for higher-yielding US equities, including AAPL shares.
The latest US jobs report has led to speculation that the Fed might hike interest rates in June. This tightening move could lead to stricter credit and more expensive business investment, which could limit company expansion. This could also weigh on consumer spending and drag down company profits.
Q4 2014 earnings data from Apple has been impressive, mostly spurred by strong sales of its iPhone units. Revenues in the current quarter could be lower though, as the holiday shopping season is already over and no new gadgets are set to be introduced. However, sustained confidence in the US economic progress could keep its stocks supported, lifting AAPL shares along the way.
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