One of the stocks we analyzed in Tuesday's Daily Market Commentary webinar was Apple Inc. (AAPL), which was able to hold its own on Tuesday and not decline with the rest of the market. This demonstration of strong relative strength while the Dow Jones Industrial Average was falling nearly 400 points is an indication that AAPL may have further to climb.
AAPL shot higher after its earnings announcement in early May, breaking to a new 52-week high as it rose above the up-trending resistance level that had been preventing the stock from rising higher since November 2017. Since that breakout, AAPL has been consolidating in a tighter and tighter range, which could be confirmed as a bullish pennant continuation pattern if the stock can break up through the down-trending resistance level just below $189.
With AAPL expected to reduce its share count by at least 10% during the next two years, thanks to its massive share buyback program, this stock is one to watch.