Apple stock reversed sharply last week after briefly flashing an early entry on Wednesday. It also remains shy of a consolidation pattern entry of 183.04.
Apple stock has undercut its 50-day line and its 200-day moving average amid broad pressure. If AAPL holds up despite the Nasdaq bear market it could be a leader in the next uptrend.
Apple stock has performed better than most stocks, especially techs, during the market correction. The relative strength line is still right at new highs. This gauges a stock's performance compared to the S&P 500.
AAPL has seen its Composite Rating shoot up to a strong 89 out of 99. Apple became the first company to reach a market capitalization of $3 trillion earlier this year, though it has now backed off this level.
Apple stock was hit after it posted its latest quarterly report late Thursday, losing ground on its 50-day moving line in the process.
Analysts expected Apple earnings to come in at $1.42 per share on sales of $94 billion. The firm posted EPS of $1.52 on sales of $97.28 billion.
However, it was punished after management said the resurgence of Covid-19 in China could hurt sales by as much as $8 billion in the current quarter.
The IBD Stock Checkup tool shows earnings growth is bouncing back in recent quarters following the Covid-19 pandemic.
Apple's EPS growth has averaged 35% over the past three quarters. This is comfortably clear of the 25% earnings growth sought by the CAN SLIM cognoscenti.
One reason to be bullish on Apple is it continues to produce new products, which is a major success factor in the CAN SLIM system.
Earlier this year Apple hosted its latest product launch. The event, broadcast live online from Apple Park headquarters in Cupertino, Calif., saw a slew of products unveiled.
Perhaps most notable was a new low-cost 5G iPhone SE. The device, which sells for $429, hit store shelves on March 18.
Speculation continues that Apple is looking to make a self-driving electric car. In November Bloomberg reported Apple is aiming to launch self-driving EVs in 2025.
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