Futures are flat this morning after Tuesday’s surge into a record breaking close, with the S&P 500 climbing by over 7%. Many mega-cap stocks which financial professionals have been analyzing climbed with broader markets, including Apple (NYSE: $AAPL).
Despite closing under a trillion dollars in value for the first time since September of 2019 on Monday, Tuesday’s rally led Apple back over a trillion dollars in value. Coincidentally, Piper Sandler financial analyst Harsh Kumar was quick to release a statement to Barrons, voicing his continued bullish outlook on Apple, as well as maintaining his overweight rating on the stock itself, despite markets having taken a downturn along with broader markets through the midst of COVID-19.
Harsh Kumar also stated that both demand and expectations remain high for 5G, a market Apple is set to tap into in the fourth quarter of 2020. A 5G release to the consumer market of Apple’s wildly successful iPhones may be yet another bullish catalyst for financial professionals and portfolio managers to take into consideration when maintaining current positions, adding new ones (such as buying shares of Apple’s stock), or actively trading it on a daily or weekly basis.
With a strong balance sheet showing over $100 billion in net cash and $60 billion remaining on its current share repurchase authorization, which could be used to repurchase shares, Apple’s future remains bright and bullish as a company from a financial fundamental point of view.
Considering the information provided to Barrons by financial analyst Harsh Kumar i overnight, it comes as no surprise that Apple was upgraded to buy from hold by Deutsche Bank at 5:11am ET this morning.
While Apple’s financial expert insights do indeed fascinate me, as an active trader, the chart itself is equally as attractive as Apple may be setting up for high reward yet low risk trading opportunities into Wednesday’s opening bell.
Indicated in white in the chart above is Apple’s 200 day simple moving average line, a strong resistance level if a stock is trading below it, and a strong support level if a stock is trading above it. With volatility in markets appearing here to stay, Apple may be able to be traded both ways today.
Above Apple’s 200 day simple moving average line and Apple may have upside profit potential to its March 9 of 2020 resistance level of $263, in which case as a trader I’d be inclined to make a bullish trade on Apple.
Inversely, should markets sell off today as we’ve seen in many recent trading sessions causing Apple to trade below its 200 day simple moving average line, Apple could drop to its recent support level of $228.50, established on March 23, 2020, in which case I’d plan on making a bearish trade on Apple looking to capitalize on a classic green to red move.
While I’m in full accordance with financial professionals and institutions on the long term bull case for Apple, stock market volatility remains in place, and therefore identifying heavily analyzed stocks by financial professionals courtesy of TrackStar which offer profit potential in green and red markets is essential to be a profitable trader in current markets.
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Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.