Apple Shares Retreating to Broken Support

Apple Shares Retreating to Broken Support

Apple Shares Retreating to Broken Support

Apple shares are still in the middle of a correction from its previous sharp drop and are currently testing the resistance at the 61.8% Fibonacci retracement level. This lines up with the 200 SMA and is near the broken support at $122/share, which might be the line in the sand for any correction moves.

A break above the $122/share level could take Apple shares up to the next resistance at $132/share. Further gains past that point could ensure a bullish run for the stock, as investors price in positive expectations for Apple sales during the upcoming holiday season.

Apple Shares Outlook

On the other hand, if the current levels keep gains in check, Apple shares could eventually fall back to the previous lows at $92.17/share. However, near-term support around the higher lows could yield support around $112/share.

For now, the path of least resistance is to the downside since the 100 SMA is below the 200 SMA. An upward crossover might indicate that a rally is about to take place but the moving averages aren’t near each other just yet.

Stochastic is pointing up, suggesting that buyers are taking the lead, while RSI is also heading north. This signifies a pickup in bullish momentum, likely to keep Apple shares supported.

Rising sales of Apple products in China indicate that the company hasn’t lost one of its major markets, even as the government decided to devalue the yuan and push the prices of imported goods higher. Not even the slump in the economy was enough to prevent Chinese consumers from chalking up an operating income of $23 billion for Apple in the greater Chinese territory, which includes¬†Taiwan and Hong Kong.

To contact the reporter of the story: Samuel Rae at

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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.