Skip to main content

Are You Long Apple as Stock Makes All-Time Highs Again?

Apple stock continues to bombard its way to new all-time highs. Here's how to trade it now that it's doing so again.

While the market has been on shaky ground lately, investors anchored with Apple  (AAPL) - Get Apple Inc. Report have done just fine.

The stock is bursting to another all-time high on Wednesday and currently up about 2.5%.

Despite the stock market closing lower on Tuesday — with the Nasdaq down 1.55% — Apple vaulted higher by 3.1% in its highest-volume session since March.

This is called relative strength and Apple’s had plenty of it lately. The stock is working on its third straight daily gain and its 12th daily gain in the last 13 sessions.

If it ends higher this week, it will be just its second weekly gain in the last four weeks. However, it will mark its seventh weekly gain in the last nine weeks.

Shares were starting to trade pretty well earlier in November, but it was the news on Nov. 18 that really sent Apple higher.

That came on reports of Apple’s autonomous vehicle efforts.

Some have wondered whether Apple’s strength could spread out to the rest of the market and to some degree it has, as the Nasdaq has been holding up better than the S&P 500 over the last few weeks.

Now what?

TheStreet Recommends

Trading Apple Stock

Daily chart of Apple stock.

Daily chart of Apple stock.

A day after those autonomous car reports hit the wire, I looked at Apple stock.

Shares ended up fading shortly after that article and in that event, I was looking for a test of the prior highs near $157 and the 10-day moving average.

And in the one down day over the last 13 sessions, that’s exactly what we got.

Surging from that area now, our prior upside targets are still in play.

We’re into the first profit area now actually, in the $170 to $173 zone. If the stock can reset a bit here and then gain momentum over $173 to $175, it opens up the second layer of extensions in the upper $180s.

I know that seems like an extreme move, but Apple runs a tremendous business and has incredible cash flow.

Coupled with strong iPhone sales and a potential EV/autonomous vehicle introduction and we could be talking about some serious upside here.

While a new EV may not be much of a needle-mover at first, just look at the massive valuations we’re seeing dished out to Rivian  (RIVN) - Get Rivian Automotive, Inc. Class A Report, Lucid Motors  (LCID) - Get Lucid Group, Inc. Report and others despite little or no production at this point.