While many of us may remember the stock market crashing in March, it has been head-scratching (to say the least) to see markets recover to the upside at the accelerated pace that emerged through the month of April.
In fact, Apple (NYSE: AAPL) is currently trading in the same price range it was in February – before markets had their worst month in history.
Given the fact that Apple reports earnings after the closing bell today, I expect intraday volatile price action on the stock itself as many hedge funds, high-frequency trading computers, and portfolio managers may be adding to, decreasing, or hedging their positions in Apple.
While many technology companies may not have adapted to the COVID-19 pandemic in a timely manner, Apple quickly addressed the abrupt societal transformation by lowering the price on their recently released iPhone before their competitors were able to provide a similar offering to consumers.
Subsequently, Apple received five upgrades from both financial institutions and individual financial analysts in the weeks after..
Given the favorable upgrades and healthy consumer demand, it’s not a surprise to see Apple trading at around the same price it was before March’s stock market selloff.
While contemplating trading Apple today, I can highlight two key components to take into account in order to strategically inform my maneuvers.
First and foremost, Apple reports earnings after the bell today. I don’t hold through earnings, so it would be a day trade for me.
Second, you’ll notice that Apple has firm support at $290/share. Should the price hold above $290/share, I’ll be interested in placing a bullish trade… making this technical analysis nice and simple prior to the opening bell.
And that’s my Apple trading plan in just a few sentences.
Yours for TrackStar trading,
Davis Martin
America’s #1 Premarket and Day Trader
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.