Will $AAPL follow $NVDA higher? – October 14, 2024
This is Scott McGregor at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to take a look at two charts because I think one of them could be telling the future of the other.
We’ll start things off here with NVIDIA ( NASDAQ: NVDA ). NVIDIA ( NASDAQ: NVDA ) had a new all-time high close today, with its close above $138.00, taking it within striking distance of the all-time high up here at 140.00 from way back in June.
Now, just looking at the pattern on this chart, I can see a pretty clear downward-sloping trendline from the high in June, all the way down to its recent breakout here on Monday of last week. And so we have a clear break of a downward sloping trendline, coming on good volume.
We also have progressively higher lows. And so we have the low back here in August, and another higher low here in September. And of course, the low right there, right under the 50-day moving average, just before it’s blast off to where it is right now.
Now, if I bring up the Apple ( NASDAQ: AAPL ) chart I can kind of see the same setup here. We have Apple ( NASDAQ: AAPL ) above all the major moving averages. We have the high from back here, this time in July, not June. I can draw a pretty clear downward-sloping trendline, hitting some resistance right there, right there, and obviously right there.
It’s unable to get above, can’t get above, couldn’t get above, and just underneath right now. And then we have, once again, progressively higher lows. Now, this one is a bit sharp. It’s a bit of a sharper move up but you get the idea. We have a low, a higher low, and another higher low, once again right near that 50-day moving average.
The 50-day moving average I think is clear and pretty important on any of the Mag 7 stocks. I want to see if Apple ( NASDAQ: AAPL ) can do the same thing as NVIDIA ( NASDAQ: NVDA ), which is to break above a pretty clear downward-sloping trendline and do it on volume and give it a chance to challenge its all-time high.
I would watch for a breakout here on Apple ( NASDAQ: AAPL ) just above this high here, and that’s right around $233.00. I would have an alert on Apple ( NASDAQ: AAPL ) right around $233.00, and look for that strong move through that level, coming on higher than average volume.
That could give you an entry, at least an elevated entry, though, at this point, it will be well above the 8-day exponential period moving average. But that will at least tell you that it’s doing, potentially, the same thing that NVIDIA ( NASDAQ: NVDA ) did and has an opportunity to start a new leg higher.
So keep an eye on NVIDIA ( NASDAQ: NVDA ) because it could be telling the future of what Apple ( NASDAQ: AAPL ) does as they both run into earnings later this month and into next month.
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