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Technical Update - Apple could be reversing bearish trend. Closing prices are key

Equities 2 minutes to read
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Technical Indicators on Apple have been indecisive about the direction of the share price. Moving Averages are in declining but RSI indicated bearish trend exhaustion. 
Maybe a share buy back program is what is needed to turn that picture around. 
Daily closing price is key.  

is set to open approximately 7% higher after earnings and share back program announced in after market yesterday.
If opening 7% higher it would around the resistance at 184.85.

If closing above that resistance level and if RSI is closing back above 60 threshold, there could be further upside potential for Apple. If that scenario plays out, there is room up to around 190. If Apple is closing above 179.66, it will have closed the gap area created a few weeks back—see weekly chart.

The strength indicator RSI has been indicating the bearish trend Apple has been trading in the past few months was in exhaustion mode and a correction could be expected. 

However, all daily moving averages are declining, and the 100 Moving Average has just recently crossed below the 200 while they are both declining. That is an indication of an underlying bearish sentiment and trend, meaning a bullish move could be short-lived, especially if Apple is closing below the 184.85 level. Failing to close the gap as previously mentioned on the weekly chart would be bearish for Apple.

If Apple is closing below 178.65, selling pressure could increase further, pushing Apple towards April lows

The double top pattern as illustrated on the weekly chart is back in play

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Source all charts and data: Saxo Group
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