Apple (AAPL) – Apple Inc. Get (AAPL) report is just a few dollars from its all-time high, while having a market cap of $2.5 trillion. So why are traders and investors so frustrated with this name?
It’s likely because the stock has spent a good deal of consolidation in the past year. Shares are up just 7.75% from their 2020 high, and it wasn’t until June that the stock was even down vs. the highest point of 2020, which was set in August last year.
However, thanks to the stock’s rally in 11 of the past 13 weeks, it was able to turn those losses into gains.
Still, the stock is lagging the S&P 500, both in the past 12 months and so far in 2021.
Over the past 12 months, the index is up about 30% from Apple’s gain of 17.5%. This year, the index is up 20% so far to 12% of Apple’s share.
That’s not the only frustrating thing. Apple continues to lower earnings expectations but continues to struggle with post-profit momentum.
Last quarter, the company beat revenue estimates by more than $8 billion, but its shares have been roughly flat since the report.
It works at an incredible level and regardless of whether the stock rewards shareholders in the short term, the gains prove why Apple is a reliable long-term interest.
Will investors start realizing more rewards now?
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Trading Apple Stocks
Even after that jump to $145.09 in January — a record high — Apple still struggled from its previous 2020 record high near $138. In July, Apple finally released that $145.09 figure.
With a base of over $145 being built, investors are looking for the next catalyst to drive the stock higher. Maybe it will be new product launches, which Apple usually does in the fall. Perhaps it will be a rotation in this name and out of others.
In any case, bulls hope this consolidation phase turns out higher, not lower.
If so, they urgently need to see the stock hit the $150 level and, more importantly, stay above it. Until now, this level has been resistance.
Above $150 and the 161.8% expansion is in play near $160. If Apple makes that clear, the twofold range expansion is near $173 in play. Ultimately, long-term investors may be able to turn their attention to the $195 to $200 zone, if Apple can free up $175.
On the downside, bulls should keep the $145 level on their radar. Not only was this the highest point, but it’s roughly where the 10 and 50 day moving averages currently come into play.
A dip to this level can be bought, provided Apple can hold these levels as support. Should the stock move lower, the $138 level could be in the cards.
For now, watch for a close above $150 or a dip to $145.