- Tech giant Apple has hit a record high after posting results last night
- 6% rise seen from last night’s closing level
- The US100 has been dragged higher by Apple’s rise. Can it too hit a new record peak?
After the closing bell last night tech company Apple delivered a surprisingly strong set of results and bucked the trend of disappointment seen earnings releases peers such as Alphabet (Google’s parent company), and Amazon. The company reported better than expected iPhone sales, revenue and earnings per share and with the 10th-anniversary version of the flagship iPhone coming soon the outlook seems positive going forward.
Apple shares have enjoyed a strong rally over the past year with the stock soaring higher. There was an apparent double top forming at 156 with some notable down day occurring near that level. However, today’s rise has taken out this level and if we close above here tonight then there could well be further gains ahead.
Apple shares have rallied to an all time high shortly after the US open. Last night’s results have caused the jump higher of approximately 6%.
Apple is the biggest single component of the US100 by some distance and therefore the index is sensitive to moves in the stock. For instance, last night the rise in Apple during out-of-hours trading saw a rally of around 30 points in the US100. With the US30 breaking to a record high and Apple following suit there’s plenty to suggest that the US100 could soon move above 6000.
However, for now this level remains a potentially key resistance and if the market fails to move to a new all-time high despite these reasons then tit could be taken as a clear warning sign for bulls. Last week’s low of 5850 could be an important level to look for support with a break below here opening up the possibility of a deeper correction.
The US100 could soon follow the US30 and Apple to record highs and move above the 6000 level. A failure to do so could spell bad news however with a break below 5850, should it occur, a clear warning sign to bulls.