Apple Stock Chart Signals Gains Through New Year’s (AAPL)

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Apple Inc. (NASDAQ:AAPL) stock has been slowly inching its way higher since putting in a bottom back in May, but it really got off to the races following the company’s annual September unveiling event.

Apple Inc. (NASDAQ:AAPL) Stock Is Signalling Higher Prices Ahead

AAPL stock surged on above-average volume to their best level in nine months, and over the past three weeks they have been consolidating around the old breakout level that is now acting as support.

That level — $112.40 to be more specific — will be an important area to watch in the short term. But over the longer term, there are other levels that we need to keep an eye on.

The first is the 50-day moving average (the yellow line in the chart below) at $109. AAPL’s most recent pullbacks in July and September bounced off this support line, and if it were to be broken it would signify a shift in Apple stock’s trend.

aapl

It’s also worth noting that the 50-day moving average crossed above the 200-day moving average (the blue line) back in September, just prior to AAPL stock’s pullback. A moving-average crossover is typically a reliable buy signal because it suggests an underlying improvement in Apple’s short-term trend. And we certainly saw that as AAPL stock bounced significantly not long after.

So while there are some things worth keeping on our radar, all technical indicators are signaling higher prices between now and the end of the year.

I do like the consolidation we’re seeing right now, but I’d probably look for some weakness in Apple stock back into the $109 to $112.40 zone before pulling the trigger here.

Matthew McCall is founder and president of Penn Financial Group, an investment advisory firm. Matt also is Editor of FUTR Stocks and the ETF Bulletin. Earlier this year, Matt and Hilary Kramer teamed up on Breakout Stocks where Matt serves as the Co-Editor. Most recently, Matt and Hilary joined forces again. This time, they are helping individual investors make money trading ETFs. For more on their latest project, visit www.etfedgesummit.com.

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