AAPL Testing Long-term Moving Average Support

AAPL Testing Long-term Moving Average Support

AAPL Testing Long-term Moving Average Support

AAPL shares could be gearing up for another leg higher, as price is now testing support at the 200 SMA. This has acted as a dynamic inflection point in the past and may continue to keep gains in check. After all, the 100 SMA is above the 200 SMA, confirming that the uptrend could carry on.

RSI is moving down though, which means that buying pressure isn’t present yet. Stochastic is also heading lower so it may take some time before buyers push AAPL prices back up.

Another leg higher could take the price up to the previous highs around $133-133.50/share or even beyond the consolidation resistance. On the other hand, a strong break lower might be a sign that a reversal is underway. AAPL shares are currently down 1.13% as the market correction is taking place.

AAPL Shares Forecast

The upcoming FOMC statement might give some direction for this stock, as this would show if central bank officials believe that the US economy is still on track to recovery. In their previous statements, they assured that the slowdown in hiring and spending was just temporary and that a strong rebound is likely to follow.

Other market event risks for this AAPL stock setup is the outcome of the Greek debt talks, which seem to be weighing on overall risk appetite at the moment. Traders are starting to price in the idea of a euro zone exit, which might have repercussions on the global economy and market sentiment.

A strong return in risk appetite could allow US equities to resume their rallies. Apple has been one of the better performing companies in the country so its stock should benefit a lot from improved economic prospects, which would mean more sales of its gadgets in the current and succeeding quarters.

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

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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.