Market Analysis: Strong Report Brings AAPL Closer To Year's High
According to the report of AAPL's activities for the Q1:
→ iPhone revenue: $51.3 billion (+2% yoy);
→ the revenue from services: $20.9 billion (+6% yoy);
→ the company is launching a buyback worth up to USD 90 billion in the next 12 months;
→ the company increases its dividend by 4% to 24 cents per share.
Although sales of iPads and computers fell, rising sales of iPhones (which account for more than half of the company's revenue) caused AAPL to rise 2.5% in premarket prices. At the opening of today's trading session, the price could be around USD 170 per share.
Thus, even today, the price of AAPL shares can renew the maximum since the beginning of the year, and also try to gain a foothold above the upper limit of the long-term channel (shown in blue), which technically gives a signal to buy AAPL shares. On the emotional side, AAPL looks like a market leader and a sound investment.
However, opening a long position could turn out to be a hasty decision if stock markets decline amid the growing threat of the US national debt ceiling. At the same time, a false bullish channel breakdown pattern may form on the chart.
According to a poll of analysts by the WSJ, the average price forecast for an Apple share is USD 180 for the coming year.
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