Apple’s stock is on track to burst through $137 resistance.
From the low $120s in May, AAPL has been trending nicely.
Stock futures indicate to a bullish start.
In a relatively quiet session on Wednesday, Apple shares gained further ground as most equities closed lower. The big tech names ended generally flat to lower, but Apple maintained its upward trajectory, closing at $136.96, up 0.46 percent. For the month of June, the stock has been heading higher after finding firm support around the low $120s.
On April 28, Apple released its first-quarter results, kicking off the latest slide. These earnings exceeded Wall Street analysts’ expectations by more than 40%, and the company added to the package by announcing an increase in its dividend and share buyback program. Despite this, AAPL stock fell continuously after the report, with the exception of an intraday jump to $137.07, which we had mentioned as a resistance objective. Apple’s unfavorable reaction to the excellent news caused the stock to drop more than 10% before settling in the low $120s. Heavy support reasons, the 200-day moving average, and some strong volume from a recent consolidation zone all came together in this level. It was time to regroup after support had been found and the slide had been stopped. Apple has done a fantastic job with this.
Apple’s main figures
$2.28 trillion in market capitalization; $2.1 trillion in enterprise value
P/E (Price/Earnings) 30
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.
As futures and European markets all push higher on Thursday, equity markets brush away fears of the new delta version. This should help AAPL stock break through the $137 resistance level. Technically, it’s $137.07, the all-time high after earnings. Once you get past that point, the volume profile starts to plummet. The chart’s right side reveals how thin it is, and a lack of volume indicates a lack of resistance. Volume is light until $145.08, when it reaches new highs, and there is no resistance above that. Above record highs, the psychological level of $150 would be the resistance.
Apple has been trailing other big tech firms, which have all been testing new highs in recent sessions, with Facebook (FB) reaching the trillion-dollar club after a favorable court verdict and Google (GOOGL) also on the verge of breaking new highs. So, if the peer group is on the rise, why shouldn’t AAPL?
The trend is solid, and with markets looking up on Thursday, Apple bulls are aiming for a break above $137 before pushing higher. However, there are concerns about delta-variant dangers, as well as the Nasdaq RSI being in overbought zone. Keep an eye on AAPL’s RSI, which is on the verge of crossing into the overbought zone. The critical support level of $131.45 continues to maintain the bullish trend in place; it also coincides with the 21-day moving average, emphasizing its significance./n
