Hot topics | Coronavirus pandemic

Here's How to Buy the Dip in Apple Stock

Here's How to Buy the Dip in Apple Stock

Apple () is longtime stock market leader, and a stock is getting better lately.

I think this doesn't come as much a surprise, as if the Nasdaq is being slid lower on the market as a whole and the market is struggling.

Apple is still a blockbuster among mega-cap holdings. Its not necessarily because of the nor the potential of it being

In a stock that has strong momentum, a strong underlying business and strong financials, I think it's pure relative strength.

Apple's stock is down 6% from its all-time high, outperforming all of its FAANG peers, including Microsoft () -, Nvidia () -,, and Tesla () - and more.

That's why Apple's traders are looking to buy a dip, which is becoming more a question of "how big of a dip" vs. will Apple stock pull back?"

Daily chart of Apple stock. is the latest user profile on

Apple stock reached a $3 trillion market cap in December, and instead, it.

TheStreet Recommands

In mid-December, we were on the verge of a rapid fall when it failed to reach that coveted market cap level.

Apple stock finally made new all-time highs, but it did so with some bearish divergence on the RSI reading. That resulted in Apple's drop, which has lowered the move to a 10-week moving average and a near-test of the lowest from a few weeks ago.

This is all about bulls wondering what to do from here.

Apple's case, I keep an eye on this week's high at $177.18. Above that mark, the stock also has the potential for a weekly-up rotation, but it holds back above the 10-day and 21-day moving averages.

The all-time high is near $183, which opens the door to the $180 to $182 area.

The levels on the downside are also quite clear, although they may be quite attractive under the right circumstances.

Keep an eye on the $168 level next week. It's currently this week's low, but it's also about what the 10-week and 50-day moving averages come into play.

A break of this level and a test of these key moving averages, followed by a return up through $168, might prove to be a lucrative and low-risk dip-buying opportunity.

Despite the high drop in rainfall, a serious drop might end up placing the monthly low and the moving average on the table at $157.50.

You may also like: