AAPL Stock Bullish Pattern on SMA Support

AAPL Stock Bullish Pattern on SMA Support

AAPL Stock Bullish Pattern on SMA Support

AAPL stock is currently in the middle of a strong uptrend, but i looks like buyers are still waiting for more momentum before pushing prices higher. The stock is consolidating above the 50 simple moving average (SMA) on its daily chart, which is holding as support.

In addition, the shorter-term 50 SMA is above the longer-term 200 SMA, confirming that the uptrend is likely to stay intact. If price breaks above the current consolidation around $127/share, AAPL stock is likely to test the previous highs around $132.50/share or perhaps make new ones.

AAPL Stock Outlook

MACD is moving lower but is nearing the oversold area, suggesting that buyers could take action soon and push AAPL stock back on its uptrend. However, if price breaks below support, it could move towards the next potential support at $120/share. A lower correction could last until the 200 SMA dynamic support at $110/share.

RSI is on middle ground and barely offering any strong clues at the moment. If it starts moving lower, traders could wait for the indicator to reach the oversold area before increasing their long positions.

News that the Apple Watch is stacking up pre-orders is providing support for AAPL stock, as this suggests strong revenues for the company once the gadget is already available in the market. Pre-orders have already reached close to a million, as customers are eager to get their hands on the device which will be released mid-year. Analysts are speculating that the initial inventory of the product may have already been sold out.

More updates on the Apple Watch and company sales could continue to keep the stock supported, although analysts also say that the wearable device might not surpass sales of the iPad and iPhone. The company has declined to release actual figures on pre-orders and the quarterly earnings release might provide more insight on sales.

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