Shares of Apple Inc (AAPL) are trading slightly higher today as the overall market bounces on the back of a weak jobs report. Many investors are miffed that a Non Farm Payrolls number of 266,000 would cause a rally in the stock market. After all, expectations were for 1,000,000 jobs to be added. The reason for the stock market rally is simple. Weaker data means the Federal Reserve will keep rates lower for longer. In addition, they will continue to pump liquidity into the system. The market loves free money, thus the rally.
When looking at the daily stock chart of Apple, it continues to hold a major support trend line starting from July 2020 and connecting to all the recent lows. This can be seen clearly in the stock chart below. As long as price holds above that trend line, Apple could grind higher towards the 52 week highs of $145.09. However, if that trend line is broken to the downside, Apple will see a major sell-0ff with downside to $96.25. As of now, Apple is safe on a technical chart basis and can be viewed as neutral to bullish. Upside resistance is the $145.09 double top.
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