Apple (AAPL) Surge Slices Through 200-Day Moving Average
Apple Inc. (AAPL) gained an impressive 3.68% on Thursday. In the process, the stock sliced through its 200-day moving average and closed above this widely-watched indicator for the first time since mid-November. AAPL was certainly buoyed by a very bullish market overall on Thursday after Wednesday’s highly accommodative Fed decision. On top of that, though, buyers also rushed into Apple’s stock ahead of next Monday’s much-hyped “it’s show time” special event.
Apple’s Special Event
During this upcoming event, Apple CEO Tim Cook is expected to unveil two new subscription services. One is a highly-anticipated video service that will compete with Netflix and Amazon. The other is an all-in-one news service for iPhone and other Apple devices.
Ahead of this special event, major research firms upgraded their ratings and/or targets for Apple’s stock. This included Needham, which upgraded AAPL from a “Buy” to a relatively uncommon “Strong Buy.” Needham also raised its price target for the stock from $180 to $225. The stock is currently trading around $195.
The Technicals for Apple
As the chart above shows, Apple has been rallying off its lows since early January. This rally occurred after the stock took a massive tumble from its all-time high in the fourth quarter of last year. If the stock is able to maintain its position above its 200-day moving average, the potential for a full recovery and return to bull market territory becomes increasingly likely.
IMPORTANT: The information above should not be construed as investment advice and should not be considered as a solicitation to buy or sell securities. Trading and investing in the financial markets involves substantial risk of loss, and may not be suitable for all investors.
Disclosure: At the time of this article’s publication, we have no position in any security or trade/investment mentioned, nor do we have any business relationship with any company whose stock may be mentioned.
Senior Technical Analyst at The Technicals
As a momentum stock trader, Luke focuses mostly on strong market moves. Luke has been trading the markets since the early 2000s, but still gets excited by big movers. Whether a surging large-cap tech company or meteoric penny stock, Luke tracks and trades winners. A technical analysis purist, Luke authors many of our Top Stocks & ETFs reports. Contact Luke