By Senad Karaahmetovic
Apple (NASDAQ:AAPL) stock has staged a remarkable recovery after a 2-month rally from June lows helped shares almost completely erase YTD losses.
With shares up more than 30% from their June lows, Apple is now closing in on the all-time high set in January this year.
A technical research strategist at Bank of America sees a potential for another remarkable rally in Apple shares.
“Renewed leadership on new all-time highs vs SPX provides a bullish leading indicator for AAPL's absolute price chart,” the strategist said in a client note.
For Apple stock to comfortably break above the $200 mark, bulls will need to hold the 157-150 support area, which would set up a bullish head and shoulders (H&S) continuation pattern.
“A breakout above the 2022 to December 2021 peaks near 176-183 would confirm this pattern and the potential for further upside on AAPL into the 230s,” the strategist added.
Apple stock rally is not a big surprise given the history of shares outperforming into the new iPhone launch. The iPhone 14 launch is expected to take place on September 7, according to Bloomberg.