Apple is truly massive. Their market cap is nearing $2 trillion. I know no one who saw that coming. The interesting thing is that maybe Apple's growth is a sign of the global economy actually thriving. More iPhones, more wealth, more apps, and more connectivity. Is that really bearish? Sounds bullish. It is hard to be a glass half full person. Apple's tremendous 100%+ move higher since the Coronavirus crash is impressive. I've added it to this chart with the percent change tool.
Now, before we get too bullish and optimistic we have to always consider the reality of the situation. How much higher will Apple go? Or more importantly, how much higher will Apple go before it is disconnected from reality? I've added the 50-day moving average and 200-day moving average to show how fast it's moving compared to a slower, rolling average price.
Wow!
Anyways, I am not going near Apple at these prices. So I will watch. It is a great boom for the technology sector and growth of the digital economy. But, I also see that maybe it's gone too far too fast. I would add around the 50-day moving average, but if it crashes, I will wait. The 200-day MA is generally a place I like to buy for the long-term.
thanks for sharing my friend.
a couple of thoughts,
- the last time Apple was near the 200MA was summer last year due to the impact of the negative news of imposing China tax - since then it rocketed up. made many traders and investor re-think their entry
- Apple is not the largest bubble -- there's so many other names that rocketed much higher (in terms of %), AMD, TESLA, to mention a couple. in reality, Apple has better fundamentals and a stronger case for growth than the others
- there's a new catalyst - let's call it, the split effect. for a $400 stock to grow to $480, eye brows go up and bears come in, but for a $100 stock to go to $120, it may just keep going :) .. both cases are 20% increase, it's just the perception and psychology ..
i also said i'm not going to touch Tesla .. and kept myself from it for very long, now with the 5-1 split, and the doors it opens, makes me re-think the opportunity --- best of luck.
scheplick
⋅
@RedKTrader, GREAT points. And agree: "Apple is not the largest bubble -- there's so many other names that rocketed much higher (in terms of %)"
thecryer
⋅
interesting. the real Apple support on a big bubble like that one should be around 290-300$. EMA300 is the strongest and safest one in that case. if you check the past you can see it clearly. cheers!
scheplick
⋅
@thecryer, Interesting I haven't used the 300 EMA but will check it out
thecryer
⋅
@scheplick, you are welcome. usually 300EMA is used as last chance when have real big dip and you cannot visualise anymore with other ones (50/100/200). i would say if a product not bounce 300EMA... it's really really bad for his future.
thecryer
⋅
@thecryer, and the most interesting with 300EMA... it works on most of all products... but it's really depends on their MarketCAP, it's not really usefull for exemple to use 300EMA on SP500...
but check for exemple on Bitcoin. it's impressive!
AXLP
⋅
@scheplick, @thecryer I don't think it's that interesting. 300 might help on a weekly chart, but you can start adding MAs everywhere. The 300 on a weekly chart is the same as the 1350 on a daily chart or the 40 on a monthly chart. You understand where I'm getting at, you can always find MAs if you start looking for them. Nevertheless, don't want to shoot that theory, it's discussion worthy and can always help.
thecryer
⋅
@AXLP, sure everything is theoric anyway. MA or EMA can be set and adapted as traders wishes, and they ondulate with trends. got your point. cheers.
jojofang0901
⋅
Good breakdown as always, thank you.
fleveneur
⋅
Looking at AAPL today, do you think it had hit its top?
ADBE also jumped $40.
This pandemic shows that we have entered a new age: Software / Cloud Service / Tech / Streaming : Tech companies not impacted by COVID. I work for Hulu and our productivity has stayed solid since confinement.
Other companies like FB, Twitter, SalesForce are probably noticing the same pattern.
Not sure if they'll invest in Offices anymore.
Great graph by the way. I'm new to tradingview. Used to be on StockChart.
a couple of thoughts,
- the last time Apple was near the 200MA was summer last year due to the impact of the negative news of imposing China tax - since then it rocketed up. made many traders and investor re-think their entry
- Apple is not the largest bubble -- there's so many other names that rocketed much higher (in terms of %), AMD, TESLA, to mention a couple. in reality, Apple has better fundamentals and a stronger case for growth than the others
- there's a new catalyst - let's call it, the split effect. for a $400 stock to grow to $480, eye brows go up and bears come in, but for a $100 stock to go to $120, it may just keep going :) .. both cases are 20% increase, it's just the perception and psychology ..
i also said i'm not going to touch Tesla .. and kept myself from it for very long, now with the 5-1 split, and the doors it opens, makes me re-think the opportunity --- best of luck.