Technical Analysis – Apple stock surpasses 50-day SMA but stands within Ichimoku cloud

Melina Deltas, XM Investment Research Desk

The Apple stock has rebounded on the multi-month low of 141.90 that was reached on January 3, surging above the strong 50-day simple moving average (SMA). The RSI and the MACD seem to be neutral with the former marginally sloping up above its 50 neutral mark and the latter flattening near the red trigger line. Also, the price stands inside the Ichimoku cloud and slightly below the red Tenkan-sen line in the daily timeframe.

In case of a climb above the 175.00 resistance level and the 38.2% Fibonacci retracement level of the downleg from 233.50 to 141.90, near 176.82, the price could hit the 185.00 barrier, taken from the highs on December 3. If the price extends gains it could re-test the 50.0% Fibonacci region of 187.65.

On the other side, downside pressures could drive the stock back down to the 23.6% Fibonacci mark of 163.43, before moving slightly lower towards the 50-day SMA and the 160.40 support. Moving significantly lower, the stock may touch the previous trough of 141.90.

In the medium term, the bearish outlook remains intact and is unlikely to change unless the price jumps above the 200-day SMA and the 61.8% Fibonacci of 198.41.