Positive technical pattern suggests potential rise for Apple stock
Apple stock is expected to rise due to positive market conditions and technical indicators
An inverted head and shoulders technical pattern has emerged on the stock, indicating a potential rise
The rise of US stock indices is contributing to the boost in Apple stock
The stock has broken through a resistance level of $156.00, which may indicate further gains
Noticeable increase in Apple stock during the past week
During the last trading sessions of the past week, Apple stock closed with a noticeable increase of about 0.83% at $160.25. This followed increases in US stock indices at the end of the week, after Federal Reserve officials intervened to calm concerns about a possible liquidity crisis in the banking sector. Federal Reserve Chairman Jerome Powell emphasized that the Fed has the necessary tools to protect depositors' money in his speech after the Fed meeting earlier in the week. In this regard, the US Federal Reserve also decided to raise interest rates by a quarter percentage point to reach interest rates at 5%.
Inverted head and shoulders pattern for Apple stock
Apple stock has surpassed the resistance level of $156.00, which represents a horizontal resistance area as well as the neckline resistance area for an inverted head and shoulders pattern on the daily chart. If the stock price remains above this level, it may continue to rise to levels of $165.00 and potentially higher. However, if the stock falls below the level of $156.00, it may face pressure and decline to test the stronger support level of $144.00, which represents the right shoulder of the pattern. If this level is broken, the pattern may fail, and the decline may extend to the support levels of $138.00 and $131.00. Therefore, it is important for the stock price to remain above the level of $156.00 to confirm the intention of the rise.