Technical Analysis – Apple uptrend loses steam, may turn neutral soon

Marios Hadjikyriacos, XM Investment Research Desk

Apple’s stock touched a multi-month high at 221.5 at the end of July, but the price has retreated since then and recorded a lower high on the daily chart. This is an indication that the bigger uptrend may be losing steam. For the uptrend to resume, the bulls would need to push above 221.5.

Short-term momentum oscillators are near their neutral levels, providing no clear directional signals.

If buyers retake the driver’s seat, they may push towards 215.0 initially, this being the August 22 high. An upside break could pave the way for a test of 221.5, where another bullish violation would reaffirm that the broader uptrend is back in play. In that case, the 2018 high of 233.5 would come into scope.

On the downside, a drop below the crossroads of the 202.0 zone and the 50-day simple moving average (SMA), could see the bears challenge the 192.5 region. Another break below that level would mark a lower low, opening the door for a test of the 200-day SMA at 185.5.

In short, the big picture is still cautiously positive, but a break above 221.5 is required to signal a resumption of the uptrend. Otherwise, a break below 192.5 may indicate further losses.