Good Times for Apple Stock
What’s happening?
Apple’s stock has been steadily rising since the beginning of June. It has gained 13% over the past month. The price has managed to hold above 124.00 supported by 200-day MA and approached the 2021 high of 145.00. What’s next?
Why is Apple’s stock rising?
First, iPhone 12 sales have been very good. The series has actually become the most successful launch of an Apple lineup since the iPhone 6 in 2014. Apple now dominates in the 5G sales market. Given the fact that iPhone 12 is the most expensive model, it’s easy to see how this is generating revenue for the firm.
Moreover, the company prepares to launch the iPhone 13 in September. Apple has a tradition of launching new iPhones in autumn and historically the stock has a tendency to strengthen ahead of these releases. The P/E multiple at the low 20s, stable yields and a dip in market volatility add to the stock’s favorable prospects.
What does it mean for traders?
The factors outlined above explain how Apple may keep outperforming in the months to come. Analysts at JPMorgan expect Apple’s stock to rise to $170. Perhaps, $170 is a long shot. In case of a break above $145 we prefer focusing on $155 where the resistance line comes. Corrections on the way there are also possible: notice that the price is rather far from the moving averages and they will need to reunite once again. The key support level is at $137: as long as the stock remains above it, buyers will rule the market pushing the price higher and higher.
