Apple Shares Hit a Record High Tuesday in Heavy Trading
Apple (AAPL) shares soared to new heights on Tuesday, marking a significant milestone for the tech giant. The stock gained over 7% in a single day, reaching a record closing high not seen since December. This surge added a staggering $215 billion to Apple’s market capitalization, positioning the company on the brink of reclaiming its title as the world’s most valuable company.
Key Takeaways
- Apple shares surged over 7% on Tuesday, hitting a new record closing high.
- The stock’s market capitalization increased by $215 billion, edging closer to becoming the world’s most valuable company.
- The breakout from a nine-month trading range was accompanied by significant trading volume, indicating strong buyer conviction.
- Technical analysis suggests a potential price target of $228 for Apple shares.
Breaking Out of the Trading Range
Apple’s stock had been trading within a defined range since August of the previous year, bouncing between upper and lower trendlines. However, after finding support near the bottom of the range in late April, the stock started a steady upward trend. This culminated in Tuesday’s remarkable breakout, propelling the stock to a new closing high of $207.15.
The breakout was notable not only for its magnitude but also for the accompanying surge in trading volume. This surge, the highest in over a year, indicated strong conviction among larger market participants. Additionally, the 50-day moving average is poised to cross above the 200-day moving average, signaling a potential uptrend with a golden cross buy signal.
Analyzing Apple’s Chart
Looking ahead, investors can use technical analysis to identify key levels on Apple’s chart. By calculating the distance of the trading range and adding it to the pattern’s top trendline, a price target of $228 can be projected. This level may act as a resistance point where sellers could take profits.
For investors seeking retracement opportunities, the trading range’s top trendline at $197 could now serve as a support level. A failure to hold this key level might indicate a bull trap, warning of a potential downside reversal.
It is important to note that the information provided is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with financial professionals before making any investment decisions.
As of the date of writing, the author does not hold any positions in the securities mentioned above.
Original article: Investopedia