Four Reasons You May Want To Buy Apple Stock Soon

Four Reasons You May Want To Buy Apple Stock Soon


Apples the stock may soon see a wave of positive catalysts, according to a trader.

Four things in particular make this a particularly attractive buy ahead of its June 7 Global Developer Conference, Todd Gordon, founder of TradingAnalysis.com, told CNBC. “Trading nation” Thursday.

1. Fundamentals

Apple is expected to unveil new operating systems for devices like Mac, iPad, Apple Watch, and Apple TV at its annual developer conference, which Gordon sees as a possible boon to the stock.

Add to rumors of a new iPhone and MacBook Pro redesigned coming later this year, and fundamentals largely support an upward move in the stock, he said.

“Apple currently has 30% of the 5G smartphone market and it is growing,” Gordon said. “The T2 profit blew expectations away. They recorded double-digit growth rates in all product categories. “

2. Market dynamics

Although on the rise Treasury yields have put pressure on technology trade in recent weeks, that correlation could weaken, Gordon said.

“After the first rally on March 21, the yields went nowhere. They just went aside for two months,” he said.

“We might see a surge in interest rates, but I think the market is starting to expect it, and the initial shock of a big rate hike won’t be as drastic as we see it keep going up,” he mentioned.

3. Sector rotation

According to him, a chart showing the SPDR ETF sector for finance, materials, discretion and technology turning back and forth shows an improving outlook for technology.

“From the end of April through May, we saw a very big movement in finance and materials,” Gordon said. “We are starting to see a very nice evolution towards technology. As we move towards [the blue] quadrant is the improving quadrant. This is the early sign of a possible return rotation. “

4. Techniques

Apple’s stock also formed a model that plays into Elliott Wave Theory, a type of predictive technical analysis based on recurring price movements, Gordon said.

He said the stock formed a five-wave pattern while consolidating, which could signal a sharp bullish move.

“It looks like we could start pushing higher from this consolidation model,” Gordon said.

ApkGeo News

Leave a Reply

Your email address will not be published. Required fields are marked *