AAPL Stock: Targeting Milestones
There is something really special about Apple Inc. (NASDAQ:AAPL) stock and it is not because I own a few Apple products. As an investment, AAPL stock is very orderly and deliberate in its price action. These characteristics make Apple stock a great candidate for trading strategies.
I center my investment views and trading strategies around price patterns and signals that are generated on a stock chart. This method of analysis is known as technical analysis, and it relies on past volume and price data to discern trends and forecast future prices. Not all stocks conform to the rules set out by technical analysis, but fortunately for me, AAPL stock does. As a result, I have formulated many successful strategies using AAPL stock.
Apple stock is currently forging a new 52-week high, and this accomplishment has many bullish implications because it serves to resolve a bullish technical pattern.
The following Apple stock chart illustrates the ascending triangle and the golden cross that continue to support a price advance.
Chart courtesy of StockCharts.com
The two key factors illustrated on the AAPL stock chart above that support a further price advance are the ascending triangle and the golden cross.
The ascending triangle contained two converging trend lines. The horizontal trend line represented resistance and the upward-sloping trend line represented support. As time progressed, these walls of price confinement began to narrow, storing momentum for the eventual breakout, as a resolution became imminent.
The golden cross is a bullish indicator that is generated when the faster 50-day moving average crosses above the slower 200-day moving average. This signal was first generated in September 2016, and suggested that a new trend towards higher prices had begun.
For the most part, when the ascending channel was in development, Apple stock remained above both moving averages, and therefore there was little danger that the golden cross would avert. This bullish positioning of price also suggested that there was an increased probability that the ascending channel would resolve itself in a bullish manner.
Now that AAPL stock has exited this ascending triangle in a bullish upwards direction, it means that the trend towards higher price is now set to commence once again.
The following Apple stock chart supports further gains and illustrates where price is heading.
Chart courtesy of StockCharts.com
The bullish trend in AAPL stock is defined by an ascending channel. This pattern contains two parallel positive-sloping trend lines that define support and resistance.
Apple stock has effectively oscillated between these two trend lines since the conclusion of the financial crisis in 2009. Every time a level of support/resistance was met, the trend quickly reversed and a new trend developed. This new trend would continue until the next level of resistance/support was met. This price action has been consistent, and there is no sign that it will end anytime soon.
Under this premise, Apple stock is on its way to meet resistance set by the ascending channel. That level sits around $150.00 and continues to rise the longer it takes price to get there.
The Moving Average Convergence/Divergence (MACD) indicator in the lower panel has enjoyed an impeccable record in confirming that a new trend has begun. This indicator uses signal-line crossings to distinguish between bullish and bearish momentum. Due to its effectiveness, this tool has become a favorite among trend followers.
Each and every substantial bull market advance in Apple stock was confirmed by this indicator, and each and every substantial bear market sell-off was also confirmed by this indicator. The track record speaks for itself.
In August, Apple stock hit support and the trend quickly reversed to the upside. In December, the MACD indicator confirmed that a new trend towards higher prices had commenced.
AAPL stock is now setup to shatter records and create new all-time highs.
Bottom Line on AAPL Stock
Multiple signals and patterns on the AAPL stock chart suggest that the trend toward higher prices is set to continue. Apple stock’s track record with abiding to technical signals and patterns has been impeccable, and as a result, I believe Apple stock has begun a trend that will shatter price records.