Apple stock may be approaching a new buy point. Apple shares jumped into record high territory after its record Q320 (ended June 27, 2020) earnings report. Apple’s record June quarter was driven by double-digit growth in both products and services and growth in each of the company’s geographic segments. The Cupertino Colossus surged to a market capitalization of over $2 trillion. But with a pullback in Apple stock, many investors are wondering if AAPL stock is a buy right now.
Since the bounce back from the lows of the coronavirus stock market crash, Apple stock has been outperforming the broader market.
AAPL stock has an IBD Relative Strength Rating of 83 out of 99. That puts it in the top 17% of stocks for performance over the past 12 months.
On Nov. 30, Apple stock got a boost after investment bank Morgan Stanley said the company is one of the best 5G wireless investment plays. AAPL stock closed the regular session on Dec. 22 at 131.88.
Apple stock is not a buy right now, but it soon could be.
AAPL stock has formed a cup base with a buy point of 138.08, according to IBD MarketSmith charts.
MacDailyNews Note: Nancy Gondo reports for Investor’s Business Daily, “Most stocks spend weeks, if not months, consolidating in bases. As a stock completes a base, it will set up an optimal buy point — the price at which it clears resistance and the stock could rise quickly… What if a stock gaps above the buy point? In such a breakaway gap from a base, you can use the high of the first five minutes of trading as an alternative buy point.” Check out Gondo’s full article for an example Apple chart that explains buy points.