- AAPL shares continue to bounce from the 200-day moving average support.
- Indicators still in bearish territory as AAPL stalls at 9-day moving average.
- Big tech stocks remain well below 2021 highs.
Apple shares have struggled ever since the release of stellar results on April 28. Earnings per share were reported at $1.40 versus the average analyst forecast of $0.99. A forty percent beat. AAPL shares were trading at $131 at the time of reporting earnings, popped up to $137 before gradually sliding back to $125. Now Apple shares find themselves in the $120’s and struggling for momentum.
Apple (AAPL) stock forecast
Apple shares rallied just about up into our neutral zone. Most notable though is that Apple stalled at the 9-day moving average (MA) resistance at $127.33. This is the first level to break which will set the scene for a move to test $131.45. From $131.45 to $135.51 is pretty strong resistance, consolidation area so AAPL may find it hard to accelerate through this region. Once $135.51 is taken the move should accelerate toward a test of highs at $145.08. There is little consolidation or price discovery between $135 and $145.
We can see clearly why Apple staged the recovery. Our bear target, consolidation 1 area is an area of strong price support with large price discovery and volume. This area also neatly contained the 200-day moving average (MA) support. So it was a strong support zone.
AAPL shares are at a pivot now from the 9-day MA. Break higher and the levels above will be in play but a failure will see a retracement toward $124 and $123 the 200-day MA. Failure would also likely see a more prolonged period testing the consolidation 1 area. This will enable traders to play the range ($119-124) and use stops in case of any breakouts.
Both MACD and DMI are in bearish territory, while the RSI and CCI remain relatively neutral.
|Resistance||127.33 pivot||129.40 weak||131.45||135.51||145.08|
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