Uptrend on AAPL Shares to Resume? – Dec 18, 2014

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Uptrend on AAPL Shares to Resume? - Dec 18, 2014

Uptrend on AAPL Shares to Resume? - Dec 18, 2014

AAPL shares are currently testing support at the 50 simple moving average, which has acted as a dynamic inflection point in the past. Price could bounce off the current levels around $107.50/share and head back to its previous highs at $120.00/share eventually.

Yesterday’s FOMC statement gave AAPL shares and most US equities a boost, as the Fed committed to keeping rates low for a considerable time even after easing has already ended. This guarantees a few more months of easy credit and cheap business investment terms, which could help keep US companies supported.

AAPL Shares Forecast

With that, US equities could benefit from the Santa Claus rally, which is set to take place towards the end of this year onto early next year. This could be positive for AAPL shares, especially since the company draws plenty of revenue during the holiday season.

However, a break below the current levels could imply that a deeper pullback is in the cards. The next support area is located near $100-102.50/share, which lines up with an area of interest. For now, the shorter-term 50 SMA is moving above the longer-term 200 SMA, indicating that the uptrend is likely to stay intact.

Price could also find support around the $95/share level, which is around the 200 SMA and is the line in the sand for any huge market corrections. A break below this level would suggest that a reversal is taking hold on AAPL shares.

The path of least resistance is still to the upside though, as Apple products such as the iPhone 6 and iPhone 6 Plus are likely to gains stronger demand as Christmas draws near. This would mean more revenue and profits for the company, which also gains income from other services.

Strong buying pressure might even lead to a break past the $120/share level later on, as the US economy continues to face brighter prospects.

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