Technical Analysis – Apple stock reaches new milestone in unrelenting uptrend

Marios Hadjikyriacos, XM Investment Research Desk

Apple’s stock price soared to 270.9 last week, marking a new record high and reinforcing the long term uptrend in the market. Almost everything is painting a positive picture, with price action consisting of higher peaks and higher troughs, safely above the 50- and 200-day simple moving averages (SMAs), and also above a longer term upside support line drawn from the June low.

The only naysayer in all this is the RSI, which met resistance near its 70 line and is now pointing down – a warning that the latest pullback may continue in the immediate term. On the other hand though, the MACD seems ready to cross above its red trigger line soon, which would be a bullish sign.

If the latest retreat continues, the first region to halt the bears may be the 256.0 area. A downside break would turn the attention initially to the 50-day SMA, currently at 249.4. Even lower, the intersection of the 241.0 zone and the aforementioned uptrend line could prove a more durable support territory.

Should the bulls retake the reins and overcome the 270.9 peak, that would bring the price into uncharted waters again, turning the focus to round figures such as 280.0 initially. The 290.0 area could come into play next, before the psychological number of 300.0 attracts attention.

In short, everything outside of the RSI suggests that the outlook is clearly positive.