That’s not to say Apple has performed badly this year but the stock has mostly done nothing. Shares have fallen 1.5% so far in 2021. Its WWDC event didn't do much to give it a boost either.
That compares to a 13.8% return for the S&P 500. Apple’s one-year gain of 52% beats the index’s gain of roughly 40%, however.
The stock has done slightly better on the year, up almost 4%, but that’s mostly due to Amazon’s rally over the past few days with shares up 7.6% from last week’s low.
Apple’s funk is even more complexing given that it has crushed earnings and revenue estimates not once, but twice so far this year. I mean, absolutely obliterated expectations.
It’s hard to blame investors who stand by the company even after the lack of a post-earnings rally. Is that lack of momentum about to end?
Like Amazon, Apple topped out in early September after completing a 4-for-1 stock split. That high came near $138 and that level has played a role ever since.
While Apple did break to a pre-earnings high of $145.09, it couldn’t hold above this level in January despite solid results. We saw similar price action in April - that is, a sell-the-news event - despite the stock still being lower from the prior report.
Apple got swept up with a bit of selling in May due to the bear market in high-growth tech stocks. While shares weren’t decimated, the stock has been trapped below $128 and the 50-day moving average.
That changed on Monday, though.
Shares jumped just 2.5% that day, but it was enough to send the stock over both of these measures. Now trying to build some momentum over $130, let’s see if Apple can get a rotation over the $130.60 mark.
If it can and the news from the Fed doesn’t derail the markets, $138 is a possible upside target. Above $138 and $145 is in play.
On the downside, keep an eye on the 50-day moving average and $128 level. Holding above these measures is important in the short term. A close below them could put the 200-day moving average and uptrend support (blue line) back in play.