Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Apple: self-driving electro future
Information is not investment advice
News and charts
As of April 1, these would be one of the top results if you google-searched “apple stock”.
At the same time, this is the view that Apple’s daily chart would offer on the April Fools’ Day.
Do these two images contradict or agree with each other? Let's discover what actually happened.
Most observers consider Apple stock a neutral trade option. That means buy and sell options are seen as relatively equal. At least, that has been the case until the very last days of March when one of the UBS analysts raised Apple stock’s rating to ‘buy’ and moved the price target for it from the previous 115 up to 142.
The reason for that is Apple’s initiative to – supposedly – produce self-driving electrocars in the future. Business-wise, this perspective opens huge market potentials for Apple and for its profits correspondingly – as long as this initiative manifests itself. So far, it’s merely a speculation but the more Apple reveals its plans – the more we’ll whether self-driving EVs is going to be one of its fields of activity. If there are indications that it’s going to proceed in this direction, investors will surely start factoring in future profits into the stock price and move it higher.
Apple’s sales increased in 2020 despite the pandemic. In the last quarter of 2020 it posted an all-time high revenue result. That’s important to understand how good the company is doing - fundamentally, there is nothing impeding it to continue further expansion. Therefore, the last all-time high of $145 per share should be a “formality” to get crossed – when investors turn to FAANG stocks again.
Keep in mind
On April 28, Apple announces its quarterly results for the Q1’2021. There’s going to be a lot of movement closer to the date!
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On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.