Apple () shares raged higher today with an acceleration gap through the $140 per share level.
After the break beyond the $127.50 target, buyers rapidly accelerated their activities, as we’ll see shortly.
Generally speaking, price never goes straight up or straight down.
Instead, we see retracements or swings build (construct) a trend in motion (higher or lower).
Buyers created an uptrend that reversed in 2015 to a short-lived downtrend that ended mid-2016.
From there, we’ve see a stable, reasonable uptrend develop from $90 to to $120.
However, once price achieved the $120 level, it was “time” for another simple, stable retracement lower.
When that didn’t happen, and price later broke $127.50’s target, buyers raged with all their might. And won.
Today gives us the ninth week in a row straight up, or 11 up if you don’t count that little red week in December.
Here’s the Daily Chart and where we are with shares of Apple at the moment:
Again we see a stable, reasonable uptrend with visible swings and retracements.
We like to buy retracements (pullbacks) to rising trendlines or moving averages in strongly trending stocks.
However, February gave us a volume surge on a price breakout through $130.
From there, buyers haven’t given up any ground as both bulls AND bears (via stop-losses) aggressively buy shares.
Congratulations to the bold Apple bulls – your efforts were magnificently rewarded in this powerful stock.
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Corey Rosenbloom, CMT
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