Technical Analysis – Apple stock ascends to new all-time high

Anthony Charalambous, XM Investment Research Desk

Apple stock’s recent climb from 192.45, which commenced on August 5, pushed the stock to a new all-time high of 249.38, where the bears emerged to cap further gains. Sellers’ efforts to return the price back down may be in vain though, as the positive picture looks to endure. This is backed by the upward slopes of all the simple moving averages (SMAs).

The short-term oscillators reflect a stall in momentum despite sustaining a positive view. The RSI fell out of the overbought territory but remains in the bullish region above a trendline. The MACD – currently in the positive area – is marginally above its red trigger line.

If the bulls retake the reigns, they could revisit the fresh all-time high of 249.38. Overcoming this peak, the stock price could rally to test the resistance at 269.00, which is the 138.2% Fibonacci extension of the down leg from 233.38 to 141.93. With another climb, the 161.8% Fibo extension of 291.00 could draw traders’ focus.

To the downside, initial support could come from 236.00, which is the 23.6% Fibo retracement of the up wave from 192.45 to 249.38 and where the 20-day SMA also lies. Beneath, the 233.38 support could hinder the drop to the 38.2% Fibo of 227.60. Moving lower, the 50.0% Fibo of 220.90 could test the bears ahead of a support region of 214.20 to 211.60 which encapsulates the 100-day SMA.

Summarizing, the short-term bias remains positive and a break above 249.38 could repower the bulls. However, below 233.38 the picture could turn neutral-to-bearish, with a close beneath 192.45 increasing the odds for a bearish bias.