After weeks of rallying, Apple shares finally showed signs of pulling back, as the pair hit resistance around $132.50/share. This could offer a better price to hop in the recent rally, as price recently surged past the $120/share psychological level.
RSI is indicating overbought conditions and is starting to move lower, indicating a pickup in selling pressure as traders booked profits recently. MACD is also giving the overbought signal, which means that Apple shares might be in for a correction.
Apple Shares Outlook
A retracement might last until the $120-125/share area, which seems to be an area of interest. Buy orders may be located around this support zone, which could keep a lid on any stock losses. If price bounces off this level, Apple shares could retest its recent highs or perhaps create new ones.
Another strong surge in buying momentum might lead to a very shallow pullback and result to another break higher. If so, Apple shares might rally until the $140/share level before the end of the week. Event risks for US equities today include the release of US CPI data, which might show a small uptick in core inflation.
Recall that Fed Chairperson Janet Yellen issued a relatively cautious testimony recently, prompting investors to price in a prolonged period of support for the US central bank. This has lifted some US equities since low interest rates would mean cheaper business investment and stronger consumer spending.
News that Google launched Android for work, which is a platform encouraging workers to use Android phones more seamlessly with office functions, lead to a brief selloff for Apple shares earlier this week. This could wind up encouraging people to shift away from using Apple devices and favor Android phones later on, which might mean lower sales for iPhone and Mac units.
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