Is Apple Stock Preparing For A Blue Sky Run?

On Tuesday’s episode of Benzinga's “Power Hour,” @ripster47 said he can see Apple. Inc's AAPL stock trading at $152 or $155 per share if it can break through resistance at the $150 mark.

$150 is currently Apple’s all-time high and for the stock to break above the level and get a blue sky run the SPY likely needs to break above its July 29 all-time high of $441.80.

The Apple Chart: On July 15 and July 26, Apple reached toward the $150 but rejected and wicked from the level which created a bearish double-top pattern. On July 27 and 28, Apple then sold off over 4% before bouncing and heading back north.

Bulls should like the consolidation in Apple’s stock because when Apple took a huge 10% run between June 30 and July 15 its relative strength index (RSI) became heavily extended and reached over 80% on two separate occasions. When an RSI is extended, it puts the stock into overbought territory which is a sell signal for technical traders.

See Also: Apple Now Has 69 Self-Driving Vehicles, 92 Drivers On The Streets Of California — More Than Tesla

Apple is trading above the eight-day and 21-day exponential moving averages with the eight-day EMA trending above the 21-day, which are bullish indicators. The stock is also trading about 13% above the 200-day simple moving average, which indicates overall sentiment in the stock is bullish.

• Bulls want Apple’s stock to remain above the eight-day EMA, which it's currently using as support, and for big bullish volume to come in and drive it back up toward the $150 level. Bulls will want continued momentum to then give Apple’s stock a blue sky run.
• Bears want to see Apple lose support of the eight-day EMA and for selling pressure to drop it back down to a lower support level at $145. If Apple’s stock was unable to keep the level as  support it could revisit the $141 area before potentially bouncing.