Apple's Stock Continues To Push Higher After Breaking Out

Apple Inc. AAPL shares are trading higher Tuesday, pushing higher above a previous area of resistance. Apple's iPad sales rose 33% in Western Europe in the third quarter as the market declined 20% year over year, according to an Apple Insider report.

Apple is up 2% at $163.47 at press time.

Apple Daily Chart Analysis

• Shares have broken out of what technical traders call an ascending triangle pattern. The stock tested the resistance level from this pattern as support and has pushed higher since.
• The $140 level is a key area where the stock had found resistance in the past, but as it trades above the area, may hold as an area of support.
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is in a period of bullish sentiment.
• Each of these moving averages may hold as a potential area of support in the future.
• The Relative Strength Index (RSI) has been climbing throughout the past month and now sits at 69 on the indicator. This shows that the stock is seeing more buying pressure than selling pressure as the stock has broken out of the pattern.

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What’s Next For Apple?

Bullish traders want to see the stock continue to hold above the moving averages and the higher low trendline. Holding above this trendline will maintain a bullish trend, while holding above the moving averages will keep sentiment bullish.

Bearish traders want to see the stock start to fade lower and fall below the moving averages and the higher low trendline. Bears also want the RSI to start dipping and fall below the middle line. The RSI below the middle line shows that enough selling pressure has entered into the stock to outweigh the buying pressure.