Apple shares: upper trend channel limit reached – UBS column

Review: Apple stocks have been on a year-long uptrend. The stocks have been moving in a rising trend channel for months. The focus of the latest upward movement is always the 10-EMA in the daily chart. Apple’s stocks have been trading largely above the 10-EMA for the past few weeks, suggesting strength. Downward corrections usually taper off slightly below the 10 EMA. As long as downward corrections are only slightly below the 10-EMA, prices can be expected to continue rising directly in the short term.

Outlook: Currently, Apple’s shares have again reached the upper limit of the rising trend channel. The past three candles of the day, each with the small candle bodies, indicate a trend high and decreasing upward momentum. The upward trend in stocks is still clearly intact, but stocks could now face a renewed decline in price.

The short scenarios: Apple shares bounce off the upper limit of the rising trend channel and begin a new downward correction. The price target of this downward correction would then be slightly below the 10-EMA, which is currently trading in the area of ​​USD 128.35. And this is exactly where the first gap on the downside is at USD 128.31, which the bears should close again. If the stocks slide further, the next starting point would be to see the 50’s EMA at USD 121.10. Below that, the lower limit of the rising trend channel would probably be started at USD 115.40.

The long scenarios: The shares of Apple can shake off the price weakness of the previous days and neutralize the bearish candles of the previous day. In this case, another bull attack on the upper limit of the trend channel could be expected. If it goes higher, an increase to the course high of USD 137.98 on September 2nd would be expected.

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