Apple is on strong correction path since it hit a two-year low of $89.5 a share on May 12th.
The stock closed at $96.43 a share yesterday and that reflects an 8% move upwards in 12 days.
There are 3 main reasons the stock pushed higher in the past couple of weeks.
The first is technical demand around $90 a share which created a solid support level.
The second reason is Warren Buffet’s $1.07 billion investment in Apple, exactly when the price was on its strong downtrend.
The third reason was published yesterday and it relates to Apple’s forecast for Iphone 7 sales in September this year.
The company is expecting to sell 75 million iphone 7’s by the end of the year! Which is much more than market expectations of 65 million. There could be hidden demand for iphone 7’s and that could could boost sales towards the end of the year.
Apple is on a very fragile uptrend and some profit taking could be triggered in the medium-short term. The next upside target is $99 a share and downside target of $92 a share.
Apple traders should also look at the Chinese Shanghai Index which is highly correlated with the company and is trading around 2800 points.