Apple shares have risen above $119 after elections show no clear winner
The camp of Joe Biden hopes that they will soon cross the 270 threshold
If the price falls below 100 dollars, this would be a strong “sell” signal.
Investor attention is currently focused on the U.S. presidential election, and the U.S. stock market is supported despite the ongoing election uncertainty. Joe Biden has taken the lead in Pennsylvania and is also ahead in Georgia, Nevada and Arizona. Joe Biden has a good chance of becoming the 46th president, and Biden’s camp hopes to cross the 270 threshold very soon.
Basic analysis: Apple’s business continues to grow
Apple (NASDAQ: AAPL) shares rose from $107.3 to $119 in less than five days, and the current price is $118. The technical picture suggests that the price could rise above $120 this November, but there are also some obvious risks when it comes to buying Apple shares.
Apple has recently released its fourth quarter earnings results, with total revenues up 1% year-on-year, while fourth quarter EPS under GAAP was $0.73. Despite this, iPhone sales declined in the fourth quarter, but the company has declared a quarterly dividend of $0.205/share, which is consistent with the previous one on a split-adjusted basis.
“Our sales results and the unsurpassed loyalty of our customers drove our active installed base of devices to an all-time high in all our key product categories. In addition, we returned nearly $22 billion to our shareholders during the quarter as we continue to maintain our goal of achieving a neutral net cash position over time,” said CFO Luca Maestri.
According to the latest news, Apple is facing a shortage of power management chips for its new family of iPhones and other devices during the important Christmas shopping season. It is still not clear how much the chip shortage will hurt the company, but Apple has ordered 20 million older iPhone models from suppliers to compensate for any delays in 5G iPhones during the busy shopping season.
Apple shares have found strong support above $100, and some analysts believe that Apple could trade even higher in the coming weeks. At its current share price, Apple could be a very good short-term investment with solid growth prospects.
I said short term investment because with a market capitalization of $2.02T, I think this stock is overvalued and only represents an opportunity for short-term traders. Profitability figures also confirm this, the PER is above 30, which confirms that this share is expensive. The risk/reward ratio is not good at the moment and maybe it is not the best time to invest in Apple shares.
Technical Analysis: Bulls focus on breaking the $120 resistance level
Data source: tradingview.com
On this diagram I have marked important resistance and support levels. The important support levels are $110 and $100, $120, $130 and $140 represent the resistance levels. If the price jumps above $120 it would be a signal to buy Apple stock and we have the open path to $130.
A rise above $130 supports the continuation of the upward trend and the next price target could be around $140. On the other hand, it would be a strong “sell” signal if the price falls below $100 and we have the open path to $90.
Elections in the U.S. are being closely watched, with Biden taking the lead in Georgia, Pennsylvania, Nevada and Arizona according to the latest news, but the U.S. presidential election continued to progress, with the winner not yet officially announced. Apple stock has been one of the biggest winners in the market in recent months. Apple’s third quarter report and the announcement of the stock split sent the stock to a new all-time high of over $100 (split-adjusted), and the rally continued to almost $138. Apple shares are currently trading around 118 dollars, but if the price jumps above 120 dollars, the next target could be 125 or even 130 dollars.