Apple, Inc. AAPL stock has been on a tear in the past two weeks, jumping all the way from around $157 to a new all-time high of $176.26 in a matter of only 10 days. Apple's market cap even breached $900 billion for the first time on its march to become the first $1 trillion company.
After such an aggressive rally, Apple stock is in cool-down mode on Thursday, but there’s nothing wrong with the stock’s medium-term technical outlook.
Silver Streaks
Apple’s latest run may seem extreme, but it’s gone on similar winning streaks throughout 2017. The stock closed higher for nine consecutive days back in July as part of its rally from $142 to $164. Apple has consistently been making higher highs and higher lows in its chart since mid-2016, the textbook pattern of a long-term uptrend.
However, traders can easily lose money in an uptrend if they're buying and selling at the wrong times, and Apple stock is showing early indications that it may have difficulty pushing above $176 for the time being.
It’s likely that Apple will retrace its steps at least to the $170 level in the near future to fill the small gap in its chart created earlier this month. But even if Apple continues lower back down the floor of its bullish channel, investors shouldn’t sweat it as long as it bottoms out at a higher low than its previous dip to $149 back in September.
Apple’s iPhone commentary and top- and bottom-line numbers were exceptional, and everything about the company’s fundamental story appears to be on track. While traders might try to try to time a short-term pullback, long-term investors can just sit back and enjoy the ride.
Joel Elconin contributed to this story.
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