- Apple initially tried to rally during the trading session on Thursday but gave up some of the gains as we reach toward the $240 level.
- The $240 level is a large, round, psychologically significant figure, and will attract a lot of attention.
- If we can break above that level, then I think you would see Apple really start to take off.
- Whether or not that happens remains to be seen, but it certainly looks like the momentum is with the bulls in this market.
Friday
Friday is the Non-Farm Payroll announcement coming out of the Bureau of Labor Statistics, and while it is not a direct correlation to Apple or its earnings, it will give us a bit of an idea as to what risk appetite might end up being. Obviously, Apple being a major technology stocks is very sensitive to the idea of what risk appetite will be, so I think it’s difficult to buy this market heading into the Non-Farm Payroll announcement. However, if we start to see a general “risk on” type of move, it’s likely that we will see Apple really start to take off.
Technical Analysis
The technical analysis for this market is strong, because we had a major gap higher on Wednesday, pulled back a bit, only to find buyers later in that day. For the Thursday session, we did try to go higher but didn’t quite have the momentum necessary to make that happen. It makes sense, because quite frankly the markets are watching very closely the labor numbers in order to make its next move. All things being equal, this is a market that more likely than not ends up buying the dip going forward. The $223 level underneath is a significant support level as it was part of the bullish flag that formed, and of course a bullish flag is something that everybody can see at the same time. Once we get out of the Non-Farm Payroll chaos, it’s likely that buyers will be interested again.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
