Apple (AAPL) Stock Forecast: Apple watch looks on time for a break of $137 and then record highs

• Apple stock is on course to break through resistance at $137.
• AAPL has been trending nicely from low $120's in May.
• Futures point to a positive open for stocks.

Apple shares made further gains on Wednesday in a relatively quiet session as most stocks ended lower. The big tech names ended mostly flat-to-lower but Apple continued to trend higher as it signed for a 0.46% gain, closing at $136.96. The stock has been trending nicely higher for June having found strong support in the low $120s.

Apple posted Q1 results on April 28 which set the recent decline in motion. Those results were over 40% higher than what Wall Street analysts had been expecting and added to the package by announcing it was increasing its dividend and share buy-back program. Despite this, AAPL stock moved steadily lower after results, apart from one intraday spike to $137.07, the level we have been mentioning as our resistance target. Apple's negative reaction to the positive results eventually saw it slide over 10% before bottoming out in the low $120s. This area saw a convergence of strong support factors, the 200-day moving average, and some strong volume from a previous consolidation zone. Once support had been found and the slide arrested, it was time to regroup. Apple has done that impressively.

Apple key statistics

Apple stock forecast

Thursday sees equity markets brush aside fears of the new delta variant as futures and European markets all push higher. This should benefit AAPL stock and lead to a break of the $137 resistance. Technically it is $137.07, the post-earnings high. Once above that level volume profile drops off alarmingly. The right of the chart shows just how much it thins out and a lack of volume means a lack of resistance. Volume is weak until record highs at $145.08 and obviously, above there is no resistance. The $150 round number psychological level would be the resistance above record highs.

Apple has been lagging other big tech names who have all been testing record highs in recent sessions with Facebook (FB) joining the trillion-dollar club after a favourable court ruling and GOOGL also close to making more record highs. So if the peer group is surging, then why not AAPL?

The trend is strong and with markets looking positive on Thursday, Apple bulls are targeting a break above $137 and then push on. But risks remain delta-variant concerns and the Nasdaq RSI being in overbought territory. AAPL is also close to its own RSI hitting the overbought zone, so keep an eye on this indicator. The key support remains $131.45, holding the bullish trend in place, this also intersects with the 21-day moving average, heightening its importance.