-- Other FAANG stocks are hitting new highs. Is Apple about to as well? Shares are moving over last month's high, a good sign for buyers --
By Bret Kenwell, TheStreet.com
Apple (AAPL) was moving nicely on Friday, up about 0.5% as investors bought the quick morning dip.
How it closes will be a different story, but for now the stock is looking much better on the long side.
On Thursday, I detailed the leadership we've seen in Facebook (FB) as the stock helps guide the move higher in FAANG and other mega-cap tech stocks.
We've also seen a robust move in Microsoft (MSFT) to new highs, although the charts were aligned for such a rally.
Is Apple about to do the same thing? It too has a bullish setup on the charts.
On Thursday, reports hit the wire that the company - along with automakers like General Motors (GM) - will curb production due to the shortage in semiconductors.
Trading Apple
Daily chart of Apple chart
Chart courtesy of TrendSpider.com
Facebook, Microsoft and Alphabet (GOOGL) - Get Report have all hit new highs in recent trading. Others like Apple have been lagging, but are showing signs of improvement.
This week, we've gotten multiple daily-up rotations in Apple, as the stock continues to take out the prior day's high. That's not too surprising, given that the stock is working on its seventh consecutive daily rally and its 10th gain in 11 sessions.
However, it also gave us a weekly-up rotation and most importantly on Thursday, a monthly-up rotation.
This has similar hallmarks to Microsoft, which went on to burst to new highs and is another reason bulls are optimistic on Apple.
With earnings due up later this month, it wouldn't be out of character to get some pre-earnings momentum in play either - particularly given the strong quarter Apple reported in January.
From here, I really want to see Apple hold up over the March high at $128.72. A pause would be healthy, but the longer it remains above this mark, the better.
It keeps the September high and clear resistance in play near $138. Above that opens the door to the current 52-week high, up near $145.
Below the March high brings up a plethora of moving averages between $125.50 and $126.50. If Apple is going to lose the March high, this area needs to act as support.
Below $124.50 and the stock could lose most or all of its short-term bullish momentum. Likely all.