- AAPL shares are still showing a slight move on Wednesday.
- FB set new highs on Tuesday, but Apple is lagging behind.
- The tech giant’s shares need to break the $ 131.45 mark to gain some interest.
Apple shares continue to be stable and trading sideways as the Nasdaq remains set to push to new all-time highs. Not much changed on Wednesday, which is not surprising given the US CPI report is on everyone’s mind. Once this becomes clear, at least some direction will become apparent. The S&P 500 is just below all-time highs, but the Nasdaq still has some work to do. Yield Wednesday has calmed down over the past few weeks as the 10-year bond yields have steadily declined. This may change with the release of the CPI data, but it is unlikely that any changes up to this point will be too exciting.
Facebook is the only FAANG name to hold onto since the results season, hitting new highs on Tuesday, while other big beasts remain in pullback or consolidation mode. Apple shares fell despite the fact that AAPL posted stunning earnings in late April and announced increases in its dividend and buyback programs. Apple shares have recently used the long-term 200-day moving average as support and have not traded below the 200-day moving average since the pandemic collapse in March 2020. So the hiatus could be worrying and push Apple towards the $ 120 target.
AAPL stock forecast
The 200-day moving average at $ 124.42 remains key support, and the fact that the 200-day price is the same as on Wednesday shows how flat the stock was on Wednesday. This area around the 200-day timeframe, as we mentioned, is an area of strong support as shown in the chart. It was a pretty decent consolidation zone in March and April. Holding above the 9-day and 21-day moving averages should encourage short-term traders and attract new buyers.
The break of the $ 131.45 AAPL resistance level remains a key moment for the bulls in completing a series of lower highs and lows and creating a test of new highs. The momentum oscillators, Relative Strength Index (RSI) and Commodity Channel Index (CCI), are all in neutral territory, with the RSI flattening out.
Apple showed off some classic rumors of a sale and a spike in stock prices ahead of the results. Apple jumped from $ 122 to $ 137 shortly before the results were published and has since dropped to nearly the level it was founded on. Volume is also declining as traders seem to be waiting for some kind of catalyst. The CPI may be just that.
The Moving Average Convergence Divergence (MACD) indicator moved into bullish territory on Monday. All that is needed is to confirm this with the stock price, which puts our first bull target on the up channel at $ 129. Any drops towards $ 120 can be used as buying opportunities as long as the trend remains constant and, as always, the risks must be carefully managed.