Apple (AAPL) - Get Report stock climbed Tuesday after its annual event unveiling new products and a new iPhone. On Wednesday, the hype helped propel shares another 3.2%, closing at $223.59 and at the highs of the day.
The move sent Apple stock well into breakout territory.
It's got investors and traders both talking about the possibilities of a strong move higher -- possibly to new all-time highs. The charts point to a bullish setup and the recent announcements could be the tailwind that helps boost the stock.
For Apple investors, a rally would be welcomed price action, particularly given the stock's tendency to have a "sell the news" reaction to many of the company's announcements. If Apple can generate strong iPhone interest ahead of what many expect to be a 5G introduction next year, the stock could have long-term upside potential.
Trading Apple Stock
On the daily chart above, investors can clearly see the resistance mark near $214 to $215. Twice this level rejected Apple on its post-earnings rallies, which came in early May and late July.
Worth mentioning is the fact that, at those very moments, trade tensions between the U.S. and China increased significantly. Call it unlucky timing for investors looking to ride Apple higher on good news.
Now, though, they're finally getting their day -- as long as the gains can hold up on Wednesday. On Monday and Tuesday, shares briefly dipped below $214 before recovering and closing higher.
On Wednesday, shares are jumping to their highest levels since September 2018. Apple stock is now breaking out of an ascending triangle, a bullish technical setup where rising uptrend support (blue line) squeezes shares against a static level of resistance. In this case, that resistance level was near $214 to $215. With today's push, Apple is breaking out and now, it would be constructive to see it hold $214 as support on future pullbacks.
The same ascending triangle is outlined on the weekly chart below, using blue lines.
If Apple stock maintains its upward trajectory, $225 looks to be the next stop just a few percent away from current levels. This level gave the stock trouble from August through October 2018 before shares finally broke down. In fact, AAPL stock has not been able to close north of this level on a weekly basis on the chart above.
On an adjusted basis, Apple's 52-week high is at $229.90 and at $233.47 on an unadjusted basis. Should it push through $225 -- preferably closing above that mark on a weekly basis -- the momentum could carry Apple to new highs in the not-too-distant future.
On the downside, though, it's vital for bulls to keep AAPL stock above $214.
This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.