Apple Inc neutral

Get the seasonal increase of the American IT sector

08 april 2022 99
Elena_Berseneva
Elena_Berseneva

Listed among the best MarketCheese authors
1st in the segments "Indices", "US stocks" and "Metals"
2nd in the segment "Currencies"
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The second spring month has started and which means they are expecting a seasonal increase in the American information sector, outstandingly represented by Apple. 


On average the growth of the information sector amounted to 2,4% in April. This level for the Apple shares amounted to $178.


 Apple’s financial report for the fourth quarter of 2021 had shown revenue growth of 11,2%, operating profit of 23,7%, and net profit of 20,4%. One earnings per share had amounted to $2,1. The result had exceeded the expectations and forecast on all listed indicators.


As the problems with the supply chain have reduced the pressure, the financial director of Apple forecasts major sales in the current quarter. Wall Street analysts expect the sales volume at $90,2 billion and earnings per share at $1,32, which is much less than the result of the first quarter of 2021.


This means that the company’s prospects for the current quarter look a bit indefinite.



In this case, let’s turn to technical analysis.


On the daily chart, we see the corrective movement after the 19% rapid two-week growth.


Yesterday 23,6% Fibonacci correction level had been hit. Usually, corrective movement allows it to hit the 38,2% level. 

 


What’s next?


There are several possible scenarios, for example, those that are presented on the chart.


Trading strategies in case these scenarios are implemented:


 1. Purchase the Apple shares on the 38,2% Fibonacci correction level or set the pending order Buy Limit at this point.

In this case, the range of $178 - $179 with the intermediate target of $172 will be a target level.

You can limit the losses by reducing the price to $165.

 

2. Purchase the Apple shares on the 38,2% Fibonacci correction level or set again the pending order Buy Limit at this point.

The range of $178 - $179 with the intermediate targets of $168,5 and $172 will be a target level again.

 You can limit the losses by reducing the price to $161,5.


 3. Purchase the Apple shares on the 61,8% Fibonacci correction level or set the pending order Buy Limit at this point.

 The range of $178 - $179 with the intermediate targets of $165, $168,5 and $172 will be a target level again.

You can limit the losses by reducing the price to $157.

 

 


Warning!

Trading on financial markets implies high levels of risk and can lead to a loss of investment capital. The MarketCheese team isn’t responsible for the possible loss of Your investment funds.

Elena_Berseneva
Elena_Berseneva

Listed among the best MarketCheese authors
1st in the segments "Indices", "US stocks" and "Metals"
2nd in the segment "Currencies"
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