Why Apple Is Now A Strong Buy
Jani Ziedins | Dec 23, 2020 12:09AM ET
It was a good session for Apple (NASDAQ:AAPL) on Tuesday. The stock popped nearly 3%, on a day when the index finished in the red. This strength followed rumors AAPL is entering the automotive space (again). These gains adds to last week’s outperformance when the stock popped 5% following reports it was increasing iPhone production.
When things are going right, everything seems to go right and that is the case with Apple right now. And that’s exactly what I wrote last week:
As I often write, a stock that refuses to go down will eventually go up. That’s definitely the case with AAPL here. After a four month cooling off, this stock is finally ready to make its next move. And given the size of [last] Tuesday’s pop, there is a lot of enthusiasm for this name.
The stock is just shy of its September highs and there is no reason to think it won’t get there. And when it gets there, there is no reason to think it will stop. Instead, expect this to break through the highs and keep going. Sentiment is bullish and that is a powerful force, especially following a five-month consolidation.
Now, that’s not to say this will be a straight line higher or this will occur over the next few days, but momentum is definitely behind this stock and it clearly wants to go higher. Maybe we break the highs next week. Maybe it doesn’t happen until next month. But as long as this remains above $120, all lights are green.
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