Asset Watch
Tuesday, August 2, 2022
While many U.S. companies struggle with teetering consumer demand and abnormally high inflation, Apple showcased immense resiliency. But will it be enough for the stock to surpass its May highs?
Apple gapped up on Jul. 29 and closed above its 200-day moving average, which is a solid gauge of long-term uptrends. Apple also closed above its September 2021 highs and its rising support line (which became resistance) drawn from the September 2020 lows. As a result, the technicals are in sync with Apple’s robust fundamentals.
However, the next hurdle is near Apple’s November 2021 and May 2022 highs of roughly $166.38. So even though the 200-day MA provides meaningful support at $158.94, the big tech titan ended the Jul. 29 session at $162.51, and the next ~$4 move is crucial.
So, is a breakout on the horizon? Or is long/short trading in the $158.94 to $166.38 range the best approach?