Technical Analysis – Where will Apple stock’s rally halt?
June 20, 2023 3:26 pm
Apple’s stock has been in a steep uptrend since late December, smashing historical resistance levels and posting a fresh all-time high of 186.37 on Thursday. The big question that lies ahead though is whether the rally can resume without a sizable pullback and at which level will the stock price peak.
The momentum indicators currently suggest that the recent rally could be overstretched as both the RSI and the stochastic oscillator are within their overbought territories, while the price is trading near the upper Bollinger band in the last few sessions. Hence, a potential downside correction may be on the cards.
If the price storms to fresh record highs, initial resistance could be met at 188.25, which is 123.6% Fibonacci retracement of the 175.99-124.02 downleg. Surpassing this region, the price could then advance towards the 138.2% Fibo of 195.84. A violation of that region could open the door for the 150.0% Fibo of 201.98.
On the flipside, should the price reverse lower and pierce through the ascending trendline, the August 2022 peak of 175.99 could be the first barricade for the bears to clear. Sliding beneath that floor, the stock could descend towards the 170.50 support before the 78.6% Fibo of 164.87 gets tested. Failing to halt there, the price could then challenge the 61.8% Fibo of 156.14.
Overall, Apple’s stock has been exhibiting persistent strength lately, recording consecutive all-time highs. Nevertheless, a downside correction should not be ruled out as the latest advance has reached overbought conditions.
Apple’s stock has been in a steep uptrend since late December, smashing historical resistance levels and posting a fresh all-time high of 186.37 on Thursday. The big question that lies ahead though is whether the rally can resume without a sizable pullback and at which level will the stock price peak.
The momentum indicators currently suggest that the recent rally could be overstretched as both the RSI and the stochastic oscillator are within their overbought territories, while the price is trading near the upper Bollinger band in the last few sessions. Hence, a potential downside correction may be on the cards.
If the price storms to fresh record highs, initial resistance could be met at 188.25, which is 123.6% Fibonacci retracement of the 175.99-124.02 downleg. Surpassing this region, the price could then advance towards the 138.2% Fibo of 195.84. A violation of that region could open the door for the 150.0% Fibo of 201.98.
On the flipside, should the price reverse lower and pierce through the ascending trendline, the August 2022 peak of 175.99 could be the first barricade for the bears to clear. Sliding beneath that floor, the stock could descend towards the 170.50 support before the 78.6% Fibo of 164.87 gets tested. Failing to halt there, the price could then challenge the 61.8% Fibo of 156.14.
Overall, Apple’s stock has been exhibiting persistent strength lately, recording consecutive all-time highs. Nevertheless, a downside correction should not be ruled out as the latest advance has reached overbought conditions.
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