Apple shares have been retreating from its previous highs recently, as though waiting for a catalyst to allow the climb to resume. The recent announcement of the new MacBook products might allow the stock to regain ground and possibly break past its previous highs.
Apple CEO Tim Cook announced a thinner and lighter MacBook that comes in three colors and boasts of prolonged battery life. This could generate more revenue for the company, as the latest product is 24% thinner than the current MacBook air and a better retina display.
Apple Shares Forecast
With that, Apple shares could bounce off its current levels and head towards the $132.50/share level, with the possibility of breaking towards the $135/share level. Risk aversion has weighed on US equities recently, as the prospect of Fed tightening in June could mean tighter credit for consumers.
However, the latest NFP release has printed another impressive reading, which suggests that consumer spending might still see more upside. This is positive for the company, as people are more likely to buy new gadgets with a stable employment outlook.
MACD is indicating a sharper pullback though, as the indicator is moving down from the overbought area. Price could test the broken resistance level at the $120/share area, which is right around the 50 simple moving average. For now, the shorter-term SMA is above the longer-term 200 SMA anyway, confirming that the uptrend will stay intact.
RSI is also hinting at a correction for Apple shares, as the oscillator is also moving down and reflecting a buildup in selling pressure. A break below the 50 SMA support, although unlikely, might mean a move back to the 200 SMA dynamic support area.
Event risks for this setup include the US retail sales report later this week, which might provide a better glimpse on how spending trends are faring and whether the new MacBook products could see a strong following.
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