After the failed upside breakout on AAPL stock, the price is consolidating around the 50 SMA (simple moving average) on the daily time frame. At the moment, the short SMA is still moving above the longer-term 200 SMA, indicating that the uptrend is intact for now.
However, the MACD indicator is reflecting indecision as it is moving in the middle of its range. Traders are still trying to pick a direction for this stock, based on overall market sentiment and the performance of Apple company.
AAPL Stock Forecasts
The tech company has yet to unveil its latest set of products perhaps later this year in a keynote address. The iPhone 6 and another version of the iPad are rumored to be on the docket, along with a few updates on iOS software. If these announcements fail to impress though, AAPL stock might chalk up some losses at least until it finds support at the 200 SMA.
The 520.00 level is holding as near term support with price moving sideways for the past few weeks. The upside could be limited to the 550.00 level if consolidation carries on and without any considerable catalyst from the US economy or the company itself.
Bear in mind that the Fed tightening is not yet set in stone, as the non-farm payrolls report printed bleak results while the FOMC minutes revealed that not all policymakers believe that rates should be increased next year. This suggests a prolonged period of stimulus in the US economy, which could be positive for economic performance and equities including AAPL stock.
The triangle pattern is still intact for now, pending a breakout in either direction. To confirm if a sustained rally is in the cards, AAPL stock has to move significantly past the 550.00 level, and this might not take place until the third quarter of the year or until Apple releases a strong quarterly earnings report.
To contact the reporter of the story: Jonathan Millet at email@example.com