After crashing late last year, Apple stock has had a massive resurgence this year. Its next milestone to hit? Being on track to flash a so-called “golden cross” technical pattern.
This indicates the potential for a major rally. It takes place when a stock’s short-term moving average crosses above its long-term moving average. Golden crosses have recently appeared for Facebook, Amazon, Netflix, and Google parent company Alphabet.
“Apple’s 50-day moving average (DMA), a short-term trend trackers, is headed to rise to $192.615 at the open from $191.930 at Monday’s close, according to FactSet, crossing above the 200-DMA, a guide to the long-term trend, which is set to rise to $192.439 from $192.356. Many chart watchers view a golden cross as marking the spot where a shorter-term rally transitions to a longer-term uptrend.”
As an indicator of just what a turbulent year Apple has had, it passed the so-called “death cross” (the opposite of a golden cross) in just December last year. This is the point at which a stock’s 50-day moving average crosses below its 200-day moving average. It can reportedly be an accurate predictor of a bear market, a steep downward trend in the stock market.
Getting ready to rally?
This isn’t the first indication we’ve had that Apple stock could be in for a rally. Recently, investor Gene Munster suggested that Apple stock is set to rocket up 70% in the next two years. This would make it a $1.5 trillion company.
At time of writing, AAPL is trading at $204.90. That gives it an overall market cap of $942.59 billion. Last week, the company was wrongly reported as having recaptured its $1 trillion market cap. The reason for the confusion was Apple’s continuing share buyback program, which affects the number of outstanding share available.
Are you predicting big things from Apple stock over the next year? Let us know your thoughts in the comments below.
This article was originally posted here