- Summary:
- Apple share price has risen in the last seven trading sessions, amid concerns over its sales numbers. What are the odds of further gains?
Apple share price traded flat in Wednesday’s pre-market, as traders set their eyes on the US inflation data. Apple (NASDAQ: AAPL) share price rose for the seventh consecutive session on Tuesday, the first such run since July 10. Coming within two weeks of a major FUD-driven stock market decline across the world, the rally is nothing short of impressive. Furthermore, the fact that its rise comes on the heels of a landmark court ruling against Google-which could have monumental effects on Apple’s partnership with the search engine giant- signals a contrarian market setup. That could see the stock continue to go against the company’s recent sales figures.
The July US Consumer Price Index (CPI) figures will be out on Wednesday, and will inform Fed decision making regarding anticipated interest rate cuts beginning from September. Higher-for-longer interest rates have been responsible for the FUD sentiment that recently triggered recession fears. Therefore, a higher-than-expected CPI reading could exert pressure on stock markets, including Apple stock.
Momentum indicators
The momentum on the 4-hour APPL signals control by the buyers, as the price is currently above the middle Bollinger Band. Notably, that corresponds to the $215.61 mark. Therefore, the uptrend could extend if the price stays above that mark. Meanwhile, the RSI is at 61, affirming strong control by the bulls.
Support and resistance levels
On the 30-minute chart below, the Apple share price signals control by the buyers above 221.00. That could lead to the establishment of the first resistance at 221.085 However, extended control could break above that mark and result in a stronger upside momentum to test 222.70. On the other hand, a move below 221.00 will favour the sellers to take control. In that case, the first support will likely come in at 220.00. However, the price action could break below that point if the sellers extend their control. That will invalidate the upside narrative and possibly test the second support level at 219.00.
