- AAPL shares trade up to test resistance at $127.87.
- AAPL shares recover as big tech names bounce.
- AAPL successfully bounces from a strong support zone.
Apple shares staged a nice recovery on Monday as big tech names steadied across the board, the Nasdaq outperformed the other main indices and this is continuing to follow through on Tuesday. AAPL shares still have a way to go before recapturing their pre-earnings release highs but are treading the right path.
Those results were knock out but the stock failed to react accordingly. Earnings per share were reported at $1.40 versus the average analyst forecast of $0.99, a 40% beat. AAPL shares were trading at $131 at the time of earnings and popped up to $137 before gradually sliding back to $122. This was a strong support zone as evidenced in the chart with a large period of consolidation back in March and April. The 200-day moving average also played its part in halting the AAPL slide. Apple shares have made a new series of lower lows and higher highs signifying a new uptrend. Further bullish hopes are pinned on the Moving Average Convergence Divergence (MACD) looking likely to cross into a bullish buy signal.
Last week FXStreet wrote about the recent fall in AAPL shares that “On a positive note AAPL did not retrace and make a new recent low, instead stalling at a higher low and so potentially signaling a turn”. Nice to call them correctly sometimes as this is exactly how it panned out. The Relative Strength Index (RSI) and Commodity Channel Index (CCI) had given some clues to a potential turnaround, as both zoned in on oversold levels. Now AAPL shares have retraced and are looking to break a small resistance at $127.87. The support at $126.78 is a pivot and holding above puts Apple on the right track for gains. There is nothing too strong about the current trend though so trade cautiously with appropriate risk management measures in place. The big resistance to get through is at $131.45, break that and Apple is looking to break the post results high of $137.07.
| Support | 126.78 pivot short term | 123.91 200-day | |||
| Resistance | 127.87 | 131.45 | 135.51 | 137.07 | 145.08 |
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