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Apple Hits New Highs on Earnings – What the Charts Say Now

Apple shares were climbing 6.5% on Friday, hitting new all-time highs after a solid earnings report.

Shares have been joined by Facebook, which also is hitting new highson Friday thanks to earnings. Elsewhere in FAANG, Amazon was rallying on earnings, but not yet hitting new highs, while Alphabet was lower on Friday despite a top- and bottom-line beat.

It’s a busy 24 hours with regard to tech stocks. In any regard though, bulls are rejoicing Apple’s result. The company beat on earnings and revenue expectations and announced a stock split as well.

The company’s iPhone revenue also came in strong, an encouraging sign given that an iPhone refresh cycle is due up later this fall, even though it will be delayed slightly.

With shares moving to new highs, let’s look at the charts.

Trading Apple Stock

Daily chart of Apple stock.

Daily chart of Apple stock.

Chart courtesy of Stockcharts.com

After rallying up to and failing several times near $400 in the first few weeks of July, Apple stock nearly pulled back to the 50-day moving average.

A quick reversal off the $355 area saved the 50-day from an official test, while shares have been grinding higher since. In the day leading up to earnings, Apple stock reclaimed the 20-day moving average.

Investors were either gearing up for a test of the 50-day moving average or a possible move to new all-time highs. In this case, it’s the latter that is playing out. With the move, we’re seeing a few notes of strength standing out.

First, Apple is still trading near its session high despite the intraday pullback in the Nasdaq and S&P 500. Second, the stock is reclaiming multiple key levels. That is, the 161.8% extension near $396, the prior all-time high near $400 and uptrend support (blue line).

If Apple can resist the urge to break back below these key levels, bulls may be able to run this name up to the two-times range extension at $439.54.

Here is something to chew on, though. With Amazon, Facebook, Apple and Alphabet reporting on Thursday evening, that is roughly $5 trillion worth of market caps putting together sizable moves on Friday.

An inability for the Nasdaq to rally on several strong results could cause some selling pressure in the market. If anything, it’s something to keep an eye on.