Why Apple's Stock May Be Headed For A New All-Time High

On Wednesday, Apple, Inc AAPL announced a Self Service Repair program to allow customers to replace broken and damaged parts for some devices at home beginning in the U.S. in early 2022.

Through the new Apple Self Service Repair Online Store, customers will be able to order tools and components, beginning with parts for the iPhone 12 and 13, and return the damaged parts for recycling to receive a credit. Apple plans to roll out the program to additional countries later next year.

Apple has lagged the tech sector recently, where peers such as Microsoft Corporation MSFT and Alphabet, Inc GOOG have taken blue-sky runs, largely due to trader and investor concerns over the impact of the global chip shortage. That may be set to change, however, because on Wednesday morning Apple busted through heavy resistance.

See Also: Why This Apple Analyst Is Predicting A Record Holiday Sales Pace For iPhones Despite Chip Crunch

The Apple Chart: Apple broke up from a falling wedge on Oct. 6 and confirmed an uptrend, making a series of consistent higher highs and higher lows. The stock then banged into a heavy resistance level near the $152.40 mark and began to trade mostly sideways, unable to regain the level as support.

The multiple attempts to break through the level, followed by consolidation set Apple under a descending trendline, which can be retraced back to the Sept. 8 all-time high of $157.26. On Wednesday, Apple broke through the trendline on big bullish volume and conquered the heavy resistance zone above.

The sideways consolidation that has taken place between Oct. 29 and Wednesday has allowed Apple to cool its relative strength index (RSI) down from about 67% to 60%. When a stock’s RSI nears or reaches the 70% level it becomes overbought, which can be a sell signal for technical traders. Apple’s lowered RSI gives the stock leeway to run higher before flashing another warning signal.

Apple is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The stock is also trading above the 50-day simple moving average, which indicates longer-term sentiment is bullish.

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• Bulls want to see Apple close the trading day above the important $152.40 level and then for sustained bullish volume to push the stock up over the Oct. 28 high of $153.17. Above the level, the stock's only other resistance before its all-time high is at $154.39.
• Bears want to see Apple close below the key resistance level and for big bearish volume to drop the stock back down below the descending trendline. Below the trendline, the stock has support at $150 and $147.79.