Apple Inc.: AAPL Stock Is Targeting $130.00 as a First Stop

AAPL StockAAPL Stock: Trending Higher

I am bullish on Apple Inc. (NASDAQ:AAPL) stock and I have reason to believe that a run toward higher prices has only just begun.My bullishness is strictly based on information I was able to extract by analyzing the AAPL stock chart.

The fundamental picture also supports higher prices, but I will leave the financial ratios as supportive of my argument for another time.

Apple stock is a heavily traded name held by many retail investors and is widely known by the general population. If you are not familiar with the smartphone-maker known as Apple Inc., then unfortunately you have fallen behind the times. Apple stock is among the most actively traded stocks on the NASDAQ, thus it offers a window into the general population’s views on the actual value of AAPL stock on any given day. For this reason, I give more credence to the signals that are generated on its price chart.

The following Apple stock chart illustrates a key signal that has served investors well.


Chart courtesy of

I like to use moving averages to generate trading signals. These moving averages can generate one of two signals. A golden cross indicates that a bull market is on the horizon, and a death cross indicates that a bear market is on the horizon. The signal is confirmed when the faster-moving average (50-day moving average) moves above or below the slower-moving average (200-day moving average). The golden cross and death cross are exact opposites.

This indicator works like an on/off switch, and investors should pay notice when this indicator is flashing a golden cross, because significant rallies have occurred when this indicator is in the bullish position. In 2013, this signal crossed in a bullish manner and AAPL stock managed to double over the next year-and-a-half. This signal recently flashed another bullish signal, so it is once again wise to pay attention.

I never use one signal to generate a bias; I need multiple indicators to confirm my trading bias.

The following AAPL stock chart illustrates the bullish signal that occurred prior to the golden cross.


Chart courtesy of

There was a signal that preceded the golden cross, and it came in the form of pattern breakout. Apple stock spent 2015 and 2016 putting in a pattern known as descending triangle. This pattern consists of two converging trend lines that represent support and resistance. There are usually five points of contact in this triangle before this consolidation patterns give way and a new trend follows.

AAPL stock completed this pattern perfectly and managed to backtest the breakout in the process, reaffirming that indeed a new trend is in development.

The golden cross served to confirm this pattern breakout, and the target price of this pattern is a retest of the old highs that stand at $130.00. This price would mark the the first level of resistance that will need to be tested and possibly broken.

The following Apple stock chart illustrates the bullish price action that followed the backtest.


Chart courtesy of

Healthy bullish charts are littered with price action that is described as impulse waves and consolidation waves. An impulse wave is followed by a consolidation which then gives way to another impulse wave. This price action defines the makeup of trending stocks.

I like these patterns because an impulse wave of equal length is projected to occur and provides a potential price target for the next run higher in price, but that can only be computed after the consolidation wave is broken to the upside.

The Bottom Line on Apple Stock

I am bullish on Apple stock, and the signals obtained from the price chart confirm this premise. My bias on AAPL stock will remain bullish for as long as the charts support this premise. My first price objective is the previous all-time high at $130.00, and it also marks the peak at which point the triangle began to develop.