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The stage is set for Apple (AAPL) - Get Apple Inc. Report stock to rally to new highs after reports say the company is upping its iPhone production by 10% amid strong demand.

The stock rallied 2.8% to $227.01 on Friday, as the stock quickly rebounds from its lows just a few days ago.

Importantly, the stock pulled back earlier this week after it failed to push through resistance. However, the stock found support exactly where investors needed it to and is now shooting higher once again.

According to Nikkei, Apple is asking its suppliers to boost production of the iPhone 11 by roughly 10% as demand has been stronger than the company expected. Given that the iPhone is Apple's biggest revenue source -- and the main gateway to its Services revenue -- it's no surprise investors are reacting bullishly to the news.

Let's look at the charts to see what's next.

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Not long ago, we flagged the breakout in Apple, as the stock quickly made its way up to $228.22. That came up just short of Apple's prior high, currently at $229.90 on an adjusted basis. Ironically, the current high was set last October.

At the time, if Apple were to fail in hurdling the $130 level, we said this about the stock: "So long as Apple is north of the $215 breakout level and the 50-day moving average, there's not much reason to get overly negative on this one."

On Thursday, AAPL stock was in the midst of a strong pullback before tagging $215.13 and snapping back up and closing above $220. It was impressive price action to say the least. Now, Friday's gap-up action thrusts Apple back above $225 and puts a test of the recent high at $228.22 back on the table.

Above that and the all-time high just below $230 is up next. If AAPL stock can hurdle the latter, though, it could embark on a strong rally higher.

Should the rally fizzle out again -- be it on its own, due to trade-war worries or amid a broader market correction -- I would love to see uptrend support (blue line) and the 20-day moving average hold as support.

But again, the must-hold level hasn't changed. That's the $215 mark and the 50-day moving average.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.