What a difference a few years makes.
Apple Inc., the company best known for kick starting the global smart phone craze with the release of the iPhone in the Summer of 2007, has seen its stock make an incredible comeback over the past year since its fall from Wall Street grace and previous all time highs made in September of 2012.
“Creativity is just connecting things. When you ask creative people how they did something, they feel a little guilty because they didn’t really do it, they just saw something. It seemed obvious to them after a while.”
In present-day terms, considering the stock underwent a 7:1 forward split (7 new shares for every 1 old share) in June of 2014, AAPL has just achieved its highest weekly close ever!
As traders, this is a significant event that draws our attention, because the stock was able to break through and hold above a previous resistance level on the weekly time-frame.
This compels further analysis and should spark our creativity as we seek to understand what the stock chart may be telling us about the past and connect the dots to project what the future may have in store.
So let's go on a stock market road trip and see what's been happening with AAPL.
AAPL: Pushing Above $100 a Share
$AAPL : Apple Inc.
At the end of last week, AAPL closed at $101.32 a share.
AAPL's previous highest weekly close was for the trading week that began on 9/17/12 and ended on 9/21/12, in which the stock closed at $100.72 a share.
What's obvious from the weekly chart is that the bulls have been dominant since the upside spike that occurred during the week beginning 4/21/14.
As illustrated on the chart, +DMI convincingly crossed over -DMI at that point and has since held above it, with the bulls firmly in control. The ADX line has since been rising, a confirmation of the trending move higher in favor of the bulls for the weekly time-frame.
Additionally, AAPL has not closed below the 10 week Moving Average since the end of April. When the markets pulled back in early August, AAPL briefly crossed under the 10 week MA during the trading week that began on 8/4/14, but was able to finish the week above it.
Conclusion
What we have now is a stock that is essentially moving into uncharted territory.
AAPL has held above the 10 week MA for eighteen weeks. If the bulls can hold above it on any subsequent pullbacks in price, that would bode well for a continued push higher.
This has been the predominant trend since April and there is no reason to go against it until the price action and chart signals otherwise.
Any spikes in -DMI moving forward would be an indication that the bears are beginning to flex their muscle and may put up a fight to restrain bullish momentum. Should the ADX line begin to point downwards, it would be a sign of a range trade potentially coming into play.