Technical Analysis – Apple stock nonstop rally shows no sign of fading

Christina Parthenidou, XM Investment Research Desk

Apple’s nonstop rally has yet to show signs of fading ahead of Black Friday sales. The market has been continuously printing new all-time highs since the close above 230.00, hitting a fresh top at 264.68 on Wednesday.

Although the RSI looks to be changing direction to the downside in the overbought area and the MACD seems to be losing steam towards its red signal line, both indicators are still well into the positive territory. Trend signals also remain bright as long as the price is distancing itself above its simple moving averages (SMAs) and the Ichimoku cloud.

Additional green sessions could lift the price up to the 270.00 psychological level and then near 275.00.

In striking distance, the red Tenkan-sen line around 260.00 could provide nearby support if sellers return to the market. Should it fail to hold, the spotlight will shift to the 255.00 level that recently managed to curb downside corrections, while beneath that, the bears will retry to push below the 20-day SMA and the 249.00 former resistance.

In the bigger picture, the positive outlook became stronger and the price needs a sharper decline now to resume a neutral profile below 230.00.

Summarizing, Apple’s stock could ease momentum in the short-term though remain bullish overall. A decisive close below 230.00 could reinstall the neutral outlook. Yet, the bears need to push harder now to reach that point.