(Bloomberg) -- The force behind Apple Inc.'s post-earnings rally is pushing a key technical indicator past a level that frequently precedes a drop in shares. The 14-day relative strength index, which measures price-movement velocity and can be used to predict turning points, indicated the stock was the most overbought in almost five years. Trading volume in Apple was nearly double the three-month average as investors look forward to the company's fall release of a new iPhone, after reporting stronger-than-forecast demand for its latest model during the final quarter of 2016.
To contact the reporter on this story: Beth Mellor in New York at bmellor@bloomberg.net. To contact the editors responsible for this story: Arie Shapira at ashapira3@bloomberg.net, Richard Richtmyer, Morwenna Coniam
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