Apple’s share price is trading close to all-time record highs ahead of next week’s key second-quarter earnings and investor call. For all intents and purposes, Wall Street expects the tech giant to post wildly bullish Q2 results.
The maker of popular electronic goods, such as iPhones and iPhones, and number other record selling products is expected to post second quarter earnings of $1.00 per share which presents a major year on year increase of over 50 percent.
Apple is one of only a handful of companies that benefits during lockdowns. Due to the fact that many companies have asked their employees to remain at home, and work remotely, Apple laptops and iPhones have naturally seen increased demand.
Additionally, Apple Inc has an increasingly strong presence in China. The world’s second largest economy has outperformed other economies during the COVID-19 crisis, and Apple’s goods continue to see ongoing robust demand from the Chinese consumer.
Next week, Apple second quarter revenues are expected to be $73.14 billion, which is nearly 22.5 percent higher than from one-year-ago during the same quarter. This underscores the sustainable, popularity, and revenue generation of Apple Inc.
In terms of the technicals, Apple’s share price looks increasing bullish after a notable invalidation of a large head and shoulders pattern. The $180.00 level is a valid year-end target.
Some concern will be warranted over the new Delta variant of COVID-19, however, tech stocks have an uncanny ability to weather the storm, and tend to benefit when QE is in force from the FED.
APPLE Short-Term Technical Analysis
The four-hour time frame looks bullish with Apple’s stock price creating higher highs and lower lows, and also the stock is moving into price discovery and also trading at an all-time high.
Looking at technical indicators the four-hour RSI indicator is slightly above 50 and this remains bullish. This also indicates that the stock is not oversold, despite remaining at all-time highs.
APPLE Medium-Term Technical Analysis
Looking at the daily time frame chart the most important feature is the fact that the bulls have invalidated a large head and shoulders pattern after moving above the January 2021 trading high this month.
According to the overall size of the invalidated head and shoulders pattern Apple’s stock price could be preparing to rally towards the $180.00 or $200.00 level over the medium-term.