Apple’s stock continues to climb toward fresh all-time highs.
All of the big tech names, particularly Facebook (FB), are up.
On its road to new highs, Apple is aiming for $137 resistance.
AAPL stock has had another excellent day of advances on its path to testing the next resistance level at $137.07. Since the middle of May, when the price retreated from what is now resistance at $137, Apple shares have been on a sustained positive trend. The earnings report was positive, and AAPL stock rose to $137 before gradually falling to the low $120s. Thought to be a strong support region, the AAPL stock had previously consolidated at this level in February and March. It was also in this zone that the 200-day moving average was located, contributing to its overall strength. Since the pandemic-induced sell-off in March 2020, Apple stock has not traded below its 200-day moving average. Since since, it has remained consistently above the national average.
So $137 was the initial test, which was the post-earnings high. As previously stated, the profits were extremely excellent and were not the cause of the stock’s decline. The adage “buy the rumour, sell the truth” is well-worn in financial markets, but even rumors about Apple’s results did not predict them coming in 40 percent ahead of most analysts’ expectations. Few people expected Apple to raise its dividend and expand its share buyback program. That was the catalyst for the initial surge in price to $137. Following that, investors became concerned about inflation, which caused the Nasdaq to fall.
The Nasdaq, on the other hand, is now setting record high after record high. Big tech stocks are soaring; Facebook (FB) recently joined the trillion-dollar club, and the majority of the FAANG stocks are trading at or around all-time highs. As can be seen in the chart below, Apple’s price movement yesterday was a bull flag on the intraday, with a robust beginning spike followed by a period of consolidation. Getting the ball rolling for more gains.
Apple’s main figures
Price/Earnings (P/E) 30 Market Cap $2.25 trillion Enterprise Value $2.1 trillion
Price/Book
35 Price to Sales 8.5 Gross Margin 40%
23.4 percent net margin
EBITDA
100 billion dollars
Buy $159, according to Wall Street’s average rating and price target.
With Monday’s move engulfing the preceding candles from Thursday and Friday and reigniting the bullish trend, the triangle breakout is still working as planned. Indecisiveness has been seeping in, but this latest step has put it to rest. With the 9-day moving average directing the advance higher, this is a superb strong trend. $132.53 might be a good place to start looking for a bargain. Most traditional technical analysis will look for the 21-day moving average if that is broken, but that is presently a little too far below, and a plunge to that level ($130.45) would call the trend into question.
The true reward for bulls is breaking $137, with the advance likely to escalate as volume dries up above this level. Once $137 is surpassed, it should be quite easy to break new record highs.
The risk-reward ratio is heavily biased to the upside. The momentum oscillators confirm that Apple is above the main moving averages and trending nicely (Commodity Channel and Relative Strength Indices, CCI and RSI). The triangle breakout is a traditional bullish move, with the entrance leg’s size, in this case $25, as the target. The objective is set at $157 because the breakout happened at $132.
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