- Apple continues to see a lot of interest on Tuesday, as the uptrend continues to push the markets higher.
- The $260 level has been broken to the upside, and now the question will be whether or not we continue to see buyers jumping into this stock.
- The momentum has been impressive, but at this point in time, it looks like we are a bit overdone. A little bit of exhaustion makes sense, and I think that a lot of people out there will be looking for value on a drop.
Technical Analysis
The technical analysis for this market continues to be bullish, and a break of the $260 level opens up a new leg, but even if we did drop from these levels, I look at the $250 level as support, with the $240 level being a bit of a “floor in the market.” The 50 Day EMA is presently in that area as well, and I think this is an area that would be interesting if we did, in fact, drop to reach that region. Anything below there shows signs of a potential deeper correction in this stock.
Top Forex Brokers
The candlestick for the Tuesday session shows a little hesitation, but ultimately, it is still strong. The Monday session is a gap that could get filled, but more importantly, it shows that there is strong interest in the stock. Furthermore, the next earnings call is on October 30, so we will get more information then. The stock tends to be noisy when we get close to an earnings call, and this could cause an opportunity for those who are willing to take the chance to pick up stock “on the cheap.” Shorting Apple is all but impossible, as we are in such a strong uptrend. However, buying a drop that then bounces might be the easiest play here.
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