Apple stock steepens declines in an upward sloping channel.

Apple stock prices declined considerably on Friday after they found a strong resistance obstacle on the all-time high of 195.88. In addition, the stock has been developing within an upward sloping channel since November 2016. The technical picture supports that the bound is likely to continue in the short-term.

Looking at momentum indicators, the RSI is heading south slightly above it neutral threshold of 50, suggesting that the market could keep moving lower in the near term. MACD also supports this view in the positive territory but is currently embraced by its red signal line.

Should the pair manage to strengthen its negative momentum, the next support could come around the 50-day simple moving average (SMA) of 189.00. A break below this hurdle would shift the bias to a more bearish one and open the way towards the 180.50 – 178.90 support zone.

However, if the bulls retake control, price advances may stall initially near the latest highs at 195.88. A potential upside violation of this level would drive the price until the return line of the channel around the next psychological levels of 200.00, 201.00 and 202.00.

In the medium-term, the outlook remains positive since prices hold above all the moving average lines.

Apple 30/07/18 | EconAlerts



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source: XM

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