Technical Analysis – Apple stock extends uptrend, eyeing 2022 highs
May 2, 2023 12:25 pm
Apple’s stock has been trending higher since late December, generating a fresh eight-month high of 170.30 in the previous daily session. However, the price is currently trading above its upper Bollinger band, hinting that this recent rally might have reached overbought conditions.
The momentum indicators currently suggest that bullish pressures are intensifying. Specifically, the stochastic oscillator is ascending within the 80-overbought zone, while the RSI is flatlining above its 50-neutral mark.
Should the rally resume, the April 2022 resistance of 171.20 could prove to be the first barrier for buyers to clear. Violating that zone, the August 2022 high of 175.99 might come under examination. Further advances could then cease at the March 2022 peak of 179.45 ahead of 182.74, which is the highest price level observed in 2022.
If the buying interest fades and the price reverses lower, initial support could be met at 164.87, which is the 78.6% Fibonacci retracement of the 175.99-124.02 downtrend. Sliding beneath that floor, the stock could descend towards 159.65 before the 61.8% Fibo of 156.14 gets tested. Even lower, the 50.0% Fibo of 150.01 may provide downside protection.
Overall, Apple’s stock has been exhibiting persistent strength lately, jumping to its highest levels since August 2022 ahead of its earnings announcement. Nevertheless, a downside correction should not be ruled out as the latest advance is dangerously approaching overbought conditions.
Apple’s stock has been trending higher since late December, generating a fresh eight-month high of 170.30 in the previous daily session. However, the price is currently trading above its upper Bollinger band, hinting that this recent rally might have reached overbought conditions.
The momentum indicators currently suggest that bullish pressures are intensifying. Specifically, the stochastic oscillator is ascending within the 80-overbought zone, while the RSI is flatlining above its 50-neutral mark.
Should the rally resume, the April 2022 resistance of 171.20 could prove to be the first barrier for buyers to clear. Violating that zone, the August 2022 high of 175.99 might come under examination. Further advances could then cease at the March 2022 peak of 179.45 ahead of 182.74, which is the highest price level observed in 2022.
If the buying interest fades and the price reverses lower, initial support could be met at 164.87, which is the 78.6% Fibonacci retracement of the 175.99-124.02 downtrend. Sliding beneath that floor, the stock could descend towards 159.65 before the 61.8% Fibo of 156.14 gets tested. Even lower, the 50.0% Fibo of 150.01 may provide downside protection.
Overall, Apple’s stock has been exhibiting persistent strength lately, jumping to its highest levels since August 2022 ahead of its earnings announcement. Nevertheless, a downside correction should not be ruled out as the latest advance is dangerously approaching overbought conditions.
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