What's going on mooging, i hope that you're having a wonderful day, my name is matt, and this channel is all about stocks trading and investing. Today i have a very exciting video for you, because i'll be sharing one of the best opportunities in the entire stock market. I will be explaining why apple stock is primed to explode to new all-time highs. After reviewing the current fundamental and technical situation, i personally believe that the stock will push higher over the next few weeks and, if i'm being completely honest, i think that will perform extremely well for all of 2021.

But before i get into all that, if you enjoy this type of stock market content, don't forget to join the moon game by hitting the subscribe button. Also, if you want free stocks, make sure to check out the links to weeble and robinhood in the description of this video and now without further ado, let's rock and roll before i hop into the current situation that apple is in as a company and a stock. I want you to know that i'm not monday morning quarterbacking, i'm not some person who's yelling at a camera in my basement. Well, i am that, but i'm also invested in apple as i'm filming this video.

I have three separate apple positions. My first one is in my private account and my cost basis is 117 and my next two positions are in the public account that i share all the details with you for those of you who don't know apple trades under the ticker aapl, and it's currently trading. Just above 132 dollars per share in this account i own four shares the average cost is 131, which means i'm up one percent on the position, and just so you know this is much more of a long-term play. I would love to hold all these shares and potentially even add some more throughout 2021.

As for the second position in the public portfolio, i own apple call options. Now this isn't meant to be an options trading tutorial video, but there is a little bit of terminology that you should know. A call option basically means that you're betting on the stock going up and the strike price that i have is 150. A strike price is just the price level that you're betting.

The stock will be above by a certain date, and the certain date in this case is its expiration date, and for me, that is february 19th. The third piece of terminology that you should know is premium and that's basically what you pay per contract. For me, that is a dollar 75 and because options are leveraged at a rate of 101. That means that i paid 175 dollars per contract right now.

I own eight of these contracts, and today alone i am up 80 on the position, but my overall return. As of now is down 15, as i said, options trading is a very risky way to play the stock market, but if the upcoming earnings announcement is a pretty positive one, this particular position could have a massive return. Speaking of earnings, announcements make sure that you have your calendar marked for january 27th, which is the date of apple's next earnings report. I'm fully expecting that this will be a positive catalyst and i'm predicting a very nice upswing in the stock.

My thesis for this is a pretty simple one. The demand for the iphone 12 is breaking all sorts of records and iphone sales account for roughly 50 to 60 percent of the company's revenue. So an uptick in this should see a nice improvement on the company's bottom line. If apple can end up beating expectations, i'm fully expecting a very nice spike in the company's stock price.

Now, for more of a long-term perspective, i would wholeheartedly argue that apple stock is a great long-term investment. All of their main business segments are growing at a double-digit rate feel free. To fact check me on that. I would highly recommend that you always do your own due diligence, but you'll find out that apple is growing at a very considerable pace.

Clearly, apple is already a premier technology company, but what's even better than that, is that they're showing no signs of slowing down their dominance? I also really like how they're expanding into new business sectors. It was recently announced that apple is attempting to get into the world of electric vehicles, they're looking to produce a beta ev as early as 2022, and then mass produce that ev as in 100, 000 of them as early as 2024. My point in bringing this up is that apple has very high ambitions and on top of that they have the money to pull it off before we get into the technical analysis of apple stock. I want to quickly answer a question from the comment section gavin asks: can you explain rsi? Thank you very much for sending it in.

This is a great question. Rsi stands for relative strength index and it happens to be one of my favorite technical indicators. If you want a more in-depth discussion of what the rsi truly is i'll post a link in the description below, but basically it maps out bullish momentum versus bearish momentum of a stock. It has values of 0 up to 100 and anything above 70 is commonly considered to be a lot of bullish momentum and anything below 30 is considered to be a lot of bearish momentum.

Now. This is in no way a perfect technical indicator, but a lot of traders and investors use it in a reversion sense. What i mean by this is when it's above 70, they look for the stock to sell off and when it's below 30, they look for the stock to rally once again. This is by no means a perfect technical indicator, but it is a great tool that can definitely help you improve your own trading.

If you have any questions, i'm sure at least 10 other people have the exact same question, so don't hesitate to post it in a comment below and now, let's check out the charts alrighty on the screen now is apple's daily chart. Just so you know on the bottom, here is the rsi indicator i was just talking about above this red line is commonly thought to be overbought and below. This green line is commonly thought to be oversold, as you can see, this indicator commonly oscillates back and forth. Okay back to apple, it's currently trading just below 132 dollars.

Today it gained a very nice, 3.2 percent and thus far in 2021, it's pretty much break even on the year. This is the current technical situation that apple stock is in. For those of you who are new to the channel, i know i added quite a bit to the screen, so let me quickly explain: what's going on these yellow lines are price levels of support and resistance, as in areas that the stock could bounce off of or Be rejected by, of course, the rsi is on the bottom. These blue lines are trend lines that the stock seems to be roughly following and last we have this green region.

Previously. This was red because it was a region of resistance. The stock was rejected here on four separate occasions, but most recently i switched it to green because it's turned into a region of support. As you can see, quite a bit of demand was found between 125 and 129, most recently from a higher level view.

Apple stock has been in a clear bullish, uptrend from march of 2020. Until right now, the last all-time high came at 138, and this happened right after the company's four for one stock split from there. It sold off and then came back up, and now we have a new all-time high of 139. Since then, it did sell off again and it found support right below 130.

Now there are a few important things that i need to bring to your attention on this particular time frame. First, at both of these highs of 139 and 138, you should take notice that they were also associated with spikes in the rsi and from there the stock did sell off. Obviously, this one was more brutal than the most recent one, but it comes back to the reversion thing i was talking about earlier. Basically, with these spikes, it's not that uncommon for the stock to sell off, or at least go into a quick period of consolidation.

Beyond that, i would like to point out how apple stock is essentially in a giant cup and handle pattern. What i mean by that is the stock scrap pretty much looks like a cup and handle from this side to this side. We have the cup right now. The handle is forming and in the world of technical analysis a lot of times once the handle is completely formed.

It does lead to a nice rally even higher and to make things even better. The most recent action for apple has been pretty bullish. I really like how it bounced off of this region of support right around 129. The rsi is finally starting to perk back up and last but not least after this bounce, we are now once again testing this trend line, as you can see four times previously.

The stock had to battle it out to get back on the top side of this trend line, but when it did, it did lead to a pretty nice push higher. So basically, what i'm trying to say is that if the bull camp can follow through on this momentum, i.e get above the resistance of this trend line and the previous resistance of 132, and there might even be a bit more resistance at 134. That would set up a very nice test of the current all-time high and, of course, above that we would have to let price discovery play itself out. So we can understand the new technical levels of support and resistance.

But personally i really like that round. Psychological area of 150 overall, i'm really liking what i'm seeing on this time frame - and i think it's just a matter of time before apple hits a new all-time high, but to get a better idea of what the stock might do over the next few trading days. Let's check out the four hour chart on this time frame: i've included pre and post market trading, so you can see a bit more of the details of the current technical setup from the start of december until mid-december. The stock was really battling it out just below 124 and then from there.

The boot camp was victorious and pushed it up to the next resistance at 129, and we did see this as a level of resistance back in late august. From there, the stock was rejected and this resistance of 124 turned into support, which is very common in the world of stock trading, resistance becomes support, support becomes resistance, and vice versa, and from there the stock had a very nice bounce and hit its current all-time high. Just below 139, as you can see, this was very much associated with a spike in the rsi and from there the stock sold off and eventually found support at 126., it ping pong back and forth which each bounce being a bit lower than the previous. So we had the formation of this triangle with a base at 126..

Most recently, we had a very nice technical bullish, breakout right above this trend line and now we're sitting at 132.. This is exactly why technical analysis is so important because, right where apple closed, was a previous site of rejection. This is why we need to map out all the areas of support and resistance, because they very much come into play in the future. Now, if the bull camp can follow through on this move, i would expect the next level of resistance to happen at 134, which is the start of this triangle, slash wedge structure, and it's also where the stock was rejected back in late december.

If the bull camp can win here, i would then expect maybe a little hiccup at 1 36, but i'll mainly be looking for a test of 139. Now, from a technical perspective, it's pretty difficult to call out the areas of support and resistance above this because the chart hasn't developed in this region. But, as i mentioned before, i will personally be looking for that psychological level of 150 dollars per share. And even though i don't think it will happen to give you a bit more of a balanced technical analysis, if this breakout ends up becoming one of those fake out breakouts, i would highly suggest looking for support to be found at 129, which would be followed by 126.

once again, i don't think that this bare scenario will become a reality, but you should be prepared to watch these price levels just in case it happens. Moving forward over the next few training days, i would highly recommend that you pay attention to how apple reacts to the current price level at 132, because if it can hold this price level, i am fully expecting a test of 134 and if they can follow through. On that, i'm expecting even better things also make sure you're paying attention to the rsi, because if it does get blown out in this overbought territory, we could have a small time reversion and, of course, don't forget about the upcoming earnings announcement. I would love to know your thoughts on apple.

How do you think that the stock will react to the upcoming earnings announcement and what is your price target on apple by the end of 2021? Let me know in a comment below if you enjoyed this video or found any value in it, it would be much appreciated if you could drop a like and if you enjoy this type of content in general, make sure to join the moon gang by hitting the Subscribe button, all that engagement, whether it's liking, commenting or subscribing, really helps this channel out and is truly appreciated by me. Also as a quick side note, if you want those free stocks, make sure to check out those links to both weeble and robinhood. In the description of this video, thanks for watching and until next time best of luck in the markets, you.