Apple share price continues to hit new highs after an announcement that a new online store will open in India in September 2020. According to an insider source quoted by Bloomberg News, the store will be opened just before the country’s biggest shopping season that terminates in the Hindu Festival of Lights known as Diwali.
This is the second major announcement from Apple in two weeks, after last week’s announcement of the 4-for-1 stock split, scheduled for August 31. Every Apple share owned before that date is eligible, enabling Apple investors to get three additional shares for every one owned, with the price of each stock eventually levelled out at a 1/4th of the original Apple share price on August 28, 2020.
Technical Outlook for Apple Share Price
If you currently hold 100 units of Apple shares at the current Apple share price of 503.43, you are entitled to receive 300 additional shares, making 400 shares in all. But these shares will be worth one-quarter of whatever the Apple share price is at the close of trading on Friday. If the stock gets to $600, then each of the 400 shares you hold will be worth $150 per share.
A look at the price chart will show that two critical Fibonacci extension levels at 514.50 (161.8% extension) and 586.01 (200% extension), stand between today’s price and the $600 psychological resistance. Traces from the swing low of 2019 to February 2020 high and down to the March 2020 swing low produced the Fibo extension levels.
Price is currently testing the 514.50 resistance. A breakout of this level is required to initiate the upside move that will attempt to march towards $600.
However, there is no guarantee that Apple share price will even attain $600 by Friday. The 514.50 resistance could make sure of this if price rejection occurs at that level. If this happens, then 476.32 (141.1% Fibonacci extension) could be the immediate target to the south, with 457.79 (August 6 low) and 436.45 (August 11 low) lining up as potential downside targets.