Apple stays above the 18-month bottom; ‘death cross’ in play.
The Apple stock rebounded on the 18-month low of 146.50 that was reached on December 26. The technical indicators are endorsing the recent upside view with the RSI holding in the bearish zone, sloping slightly up, and the MACD is strengthening its positive momentum above the trigger line. However, at the end of the previous month, the 50-simple moving average (SMA) posted a ‘death cross’ with the 200-SMA in the daily timeframe.
In case of a climb above the 160.40 resistance level, the price could challenge the 23.6% Fibonacci retracement level of the down-leg from 233.50 to 146.50, near 167.05. Moreover, if the price pares the losses of the last few weeks, it could re-test the 172.43 resistance level.
On the other side, further downside pressures could drive the stock even lower towards the previous multi-month low of 146.50. Moving significantly lower, there is no major support level until the 142.00 level, taken from the low on July 2017.
In the medium term, the bearish outlook remains intact, with the moving averages all pointing downwards.
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