- Apple reported Q1 earnings after the close on Wednesday.
- Apple beat estimates on both revenue and earnings per share (EPS).
- Apple (AAPL) finally catches an upgrade from Goldman Sachs.
Apple (NASDAQ: AAPL) reported Q1 2021 earnings after the market closed on Wednesday and the company lived up to its reputation. Apple easily beat analyst estimates, posting earnings per share of $1.40 versus forecasts for $0.99. Apple revenue came in for the first quarter at $89.58 billion versus a forecast of $77.36 billion. So not really a beat but a smash and grab. Understandably the shares rallied after the release, and Apple shares are currently trading at $137.08, up nearly 3%.
Apple also raised its dividend and added a cool $90 billion to its buyback program.
Stay up to speed with hot stocks' news!
Apple (AAPL) stock price forecast
The daily chart for Apple has seen a strong recent uptrend from the lows in late March. This move has been nicely held up by the 9-day moving average. Apple shares were waiting for direction, sitting on the 9-day moving average as the Q1 results were released, but now have powered higher in a bullish move.
The Moving Average Convergence Divergence (MACD) has come dangerously close to giving a sell signal, but the price action in the premarket should now see this fail. The Relative Strength Index (RSI) and the Williams oscillator are both in neutral territory, so there is nothing to worry about in terms of overbought or sold conditions. The Directional Movement Index (DMI) remains in bullish territory, and the yellow average line is showing the trend strengthening. A value above 25 indicates trend strength.
Clearly, we can now see from the daily chart the first and second consolidation phases that the Apple share price has gone through recently. This daily chart has not updated to show premarket pricing, but Apple at $137 points to the AAPL share price already breaking out of the second consolidation phase. The target is, therefore, to recapture the $145 high from January.
Remaining above $137 also takes Apple higher than the breakdown range from February, meaning it is firmly ready to push higher.
The strategy offering the highest risk reward is to be long, stay long or get long. Any pullback to $135.51 can be used to initiate longs. Further support is given by the 9-day moving average at $133.45. A break of this may be used to exit positions as the trend would be questionable or bearish. These levels are of course for short-term traders.
The broader macro environment remains supportive post Jerome Powell and the Fed on Wednesday. Equity markets continue to set record highs, hence being on the long side is currently the higher risk-reward strategy.
A long-call strategy can also work well as investors know the maximum risk. May '21 $140 calls are trading near $2.20 per share (option contracts cover 100 shares).
As always, manage risk carefully and watch price movements to know when the sentiment has changed.
At the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
This article is for information purposes only. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. It is important to perform your own research before making any investment and take independent advice from a registered investment advisor.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to accuracy, completeness, or the suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The author will not be held responsible for information that is found at the end of links posted on this page.
Errors and omissions excepted.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0650 after PMI-inspired rebound
EUR/USD loses traction and retreats to the 1.0650 area after rising toward 1.0700 with the immediate reaction to the upbeat PMI reports from the Eurozone and Germany. The cautious market stance helps the USD hold its ground ahead of US PMI data.
GBP/USD fluctuates near 1.2350 after UK PMIs
GBP/USD clings to small daily gains near 1.2350 in the European session on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling stay resilient against its rivals.
Gold flirts with $2,300 amid receding safe-haven demand
Gold (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark in the European session. Eyes on US PMI data.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.