Apple stock edges higher; outlook remains negative in the medium term.
The Apple stock rebounded on the multi-month low of 141.90 that was reached on January 3. The RSI and the MACD are endorsing the recent upside move with the former sloping up marginally below its 50 neutral level and the latter strengthening its positive momentum above the red trigger line. Trend signals, however, are still negative as the “death cross” between the 50- and the 200-day simple moving averages (SMA), occurred last month, suggesting that the long-term downtrend will hold in place.
In case of a climb above the 153.90 resistance level, the price could surpass the upper Bollinger band and challenge the 23.6% Fibonacci retracement level of the downleg from 233.38 to 141.90, near 163.50. If the price extends gains it could re-test the 172.50 resistance level.
On the other side, downside pressures could drive the stock back down to the 148.80 support level. Moving significantly lower, the stock may touch the lower Bollinger band around 145.50 before heading towards the previous trough of 141.90.
In the medium term, the bearish outlook remains intact, with the longer-term moving averages all pointing downwards.
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