Look For New Rallies in Apple
Stock markets have received a good deal of attention for most of this year as the central stock benchmarks have continued to press forward to new record highs. So while most of the attention is being placed on the S&P 500 and the NASDAQ 100, there are many individual stocks that have supported these rallies and should be viewed as suitable for new long positions. Some of these names might be more obvious than others but when we are looking at names that are holding up the NASDAQ 100, it is very difficult to leave names like Google, Inc. (GOOG, Financial) and Apple, Inc. (AAPL, Financial) out of the mix. When dealing with the other central indices, there is a good amount of reason to establish a bullish case on stocks like Bank of America Corp. (BAC, Financial) and Exxon Mobil Corp. (XOM, Financial) when we are looking for names that are likely to continue supporting the rallies.
From a technical perspective, it is looking as though the largest bullish case can be made for Apple, as the level of momentum that is currently present in the stock should continue propelling it forward into the second half of this year. As long as Apple is able to maintain this price momentum, we could see gains that outperform what is seen in the NASDAQ 100 as a whole, so there is a strong case for trading individual stocks as opposed to the larger stock indices. Here, we will outline some of the most critical support and resistance levels that should be used to define the trends in AAPL.
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Apple, Inc. (NASDAQ: AAPL)
Critical Resistance:135
Critical Support: 122
Trading Stance: Bullish
(Chart Source: Mocaz)
Apple, Inc. / AAPL Stock Trading Strategy: Prices are pressing into resistance but momentum is still positive and this favors upside breaks going forward. Next resistance now comes in at 135.
The long-term momentum in AAPL remains positive even though we are now moving into the closely watched resistance level at 135. Some might view this as an opportunity to sell but since the MACD indicator remains positive it is much more likely that we will see sustained upside breaks in the stock. On the downside, support now comes in at 122, and this can be used as an area for buying on dips. Overall, the bias is bullish and there is no real indication that this will be changing unless we see a change in the indicator readings.
