Apple (AAPL) stock continues to churn higher. While finishing in the green by just 0.28% at $224.59 in Tuesday’s trading session, shares were as high as $228.22 on the day, just a stone’s throw away from its former all-time high.
The stock is drawing mixed fanfare, though.
Apple stock hit its former all-time high at $229.90 almost one year ago, on Oct. 3, 2018. Investors like to sniff out stocks that are performing well, and since the August lows, Apple stock has certainly turned some heads, up ~18%.
So why the concern?
Last year also featured the stock market and Apple trading near its highs, with the former serving as a beacon of stability. Even once the market got choppy, Apple stock held firm for most of the month.
That’s not to imply that the market — or AAPL stock for that matter — will implode because shares of the iPhone maker are doing well. Just that we’ve seen this rodeo before and it may have some investors cautious moving forward. Let’s take a closer look at the charts.
Trading Apple Stock
It’s worth pointing out that the chart above adjusts its pricing for the dividend. On that basis, Apple stock has an all-time high at $229.90. On an unadjusted basis, it’s up at $233.47.
So can Apple stock go on to make new all-time highs? Certainly.
It’s a little concerning that shares rallied up toward the $229 level and swiftly backed away from it on Tuesday. However, that likely has more to do with the decline in the overall market. As long as AAPL stock holds above its 20-day moving average, it’s hard to get too bearish on the name.
In fact, so long as Apple stock is north of the $215 breakout level and the 50-day moving average, there’s not much reason to get overly negative on this one.
Below those marks brings up the 23.6% retracement near $209, as well as the 38.2% retracement at $195.68. Just below is the 200-day moving average currently at $188.85.
I’m looking for Apple stock to build above of $225, a tough level over the past 12 months, and eventually push through $230. That will cement a move to new highs and trigger a likely run to $233.47 — its unadjusted 52-week high. Above that, and Apple stock can gain more momentum.
Remember, while the recent rally may seem overdone, the RSI (blue circle) does not indicate an overbought condition, while Apple stock is roughly flat year-over-year. That’s a lot of consolidation and could help spring the next move higher.