Not even a triple-digit drop on the Dow
can derail Apple’s
momentum these days. In fact, with the blue chips in the dumps to start the week, shares of the iPhone maker were up 1% on Monday.
This is a trend that, if it continues, could have serious upside ramifications, according to Chris Kimble of the Kimble Charting Solutions blog.
He used this chart to show how Apple’s stock, which managed to close at a record high on Friday and is on its way to another, has rallied more than 12% in the past 30 days to more than double the performance of the S&P 500 index
Technically speaking, Kimble explains that Apple has spent the past 13 years inside a rising channel and that the recent push has the stock attempting to break through six-year resistance. If that happens, he believes more buyers will pounce.
And there are certainly plenty of buyers on the sidelines, at least according to UBS data. The bank recently determined that the $900 billion company is the biggest underweight position in the world.
Kimble also illustrated how the Nasdaq
is facing a pivotal level, as well, having been caught in a 15-year rising channel. If Apple follows the trend he’s laid out, expect the Nasdaq to also free itself from its long-established range: