Apple stock is working on its eighth straight daily gain. Can it continue lead the Nasdaq higher?
Apple (AAPL) – Get Apple Inc. Report stock has been on one impressive run, as shares look to finish higher for the eighth straight trading session.
Think about that.
At a time where the markets have been badly bruised, Apple stock has almost rallied every day for two weeks.
Maybe there’s something to be said for having a robust balance sheet and immense cash flow — something that helped attract Warren Buffett’s Berkshire Hathaway (BRK.A) – Get Berkshire Hathaway Inc. Class A Report (BRK.B) – Get Berkshire Hathaway Inc. Class B Report as well.
Apple stock is just 6% off its all-time high. As I noted earlier in the month, Apple stock is the best-performing component to the MMAANG group — essentially FAANG with the addition of Microsoft (MSFT) – Get Microsoft Corporation Report and the updated corporate name for Meta (MVRS) – Get Meta Report (formerly Facebook).
All that aside, Apple has been a leader on the downside, holding up better than many of its peers. Now it’s charging higher, with its $2.8 trillion market no doubt giving a nice boost to the markets and to sentiment.
Can it continue to lead stocks out of trouble?
Trading Apple Stock
Daily chart of Apple stock.
Chart courtesy of TrendSpider.com
On Feb. 24, Apple stock gapped lower and held the 200-day. That session marked the February low. However, Apple stock undercut the February low in mid-March. Apple broke the 200-day this time around, closing below it on March 14.
Here’s where using multiple timeframes comes in handy though.
Apple held the 50-week moving average in the March correction, then rotated over the prior day’s high on March 15 and reclaimed the 200-day.
In all, it looked like a big shakeout on the prior day, with the stock’s decline below the February low and the 200-day surely triggering a bunch of stop-loss orders.
And that was that, as Apple stock has now cruised higher since.
As it hesitates near the 61.8% retracement I have two areas in mind near this point. If Apple breaks below the 61.8% retracement and moves lower, keep an eye on the $165 to $167.50 area.
There it finds the 10-day, 50-day and 21-week moving averages, as well as the daily VWAP measure. If that fails, the 21-day moving average and the $161.50 level (the 50% retracement of the current rally) are on watch.
On the upside, keep an eye on the $175 to $177 zone, which was resistance in January and February, with last month’s high sitting at $176.65.
Above all of those levels puts $181 back in play, followed by the all-time high up at $182.94.
