u s shares highlight apple inc 2 298562015

Apple Inc. (AAPL) – Risk of a potential 6% decline before long-term bullish trend resumes

(Click to enlarge charts)

What happened earlier

With reference to our last update dated on 27 January 2015, Apple has managed to rally and hit our expected target at 124.80/128.40. Later today (09 March 2015), Apple Inc. will be announcing the final details of the much anticipated Apple Watch. Let’s us review its current technical elements.

Key elements

• Current price action has formed a weekly “Spinning Top” at the upper boundary of the ascending channel in place since 15 April 2014 at 133.60 (see weekly chart).
• The long-term RSI oscillator has flashed a bearish divergence signal at its overbought region and shows further downside potential before reaching its support (see weekly chart).
• The 50-day Moving Average is coming to support Apple at 118.93 (see daily chart).
• The lower boundary of the ascending channel and 200-day Moving Average coincides at the 112.15 level (see daily chart).
• The 118.93/112.15 support zone also coincides with Fibonacci retracement levels.
• The intermediate term Stochastic oscillator still has some “room” before reaching the oversold region (see daily chart).
• The long-term resistance at 141.10/145.30 is a Fibonacci projection cluster (see weekly chart).

Key levels (1 to 3 months)

Intermediate support: 118.93

Pivot (key support): 112.15

Resistance: 133.60 & 141.10/145.30

Next support: 103.70

Conclusion

Based on the above mentioned elements, below 113.60 may see an intermediate term decline towards the 118.93 support with a maximum limit set at the 112.15 monthly pivotal support. Thereafter, Apple is likely to resume its long-term bullish trend to target the long-term resistance zone at 141.10/145.30

On the other hand, failure to hold above 112.15 may damage the long-term bullish trend to see a correction towards 103.70 in the first instance.

Source:  Charts are from eSignal

Disclaimer

The information contained in this material is intended for general circulation only.  It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs.  Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.  All queries regarding the contents of this material are to be directed to City Index Asia Pte Ltd.