As mentioned in my earlier report HERE
, Wall Street analysts expect Apple to break the $100 billion barrier in quarterly sales. But its results could once again beat those expectations. Sales of the new iPhone 12 will be factored into its earnings and a growing number of analysts believe it was a good quarter for iPhone sales despite being in the middle of the pandemic. What’s more, the work-from-home trend during the lockdown is likely to have boosted sales of Apple iPads, desktops and laptops. So, there is a chance this could be Apple’s best quarter ever.
Wall Street analysts expect Apple to post a 12% jump in revenue to $103 billion, with an earnings per share of $1.41.
So, don’t be surprised if AAPL shares rise to new record highs, having just broken above prior resistance range at $138.00 in anticipation of bumper quarterly sales:
Source: ThinkMarkets and TradingView.com
The next Fibonacci extension levels, derived from the last downward move in September, come in around $147.47 (127.2%) and $159.54 (161.8%). These could be among the bullish targets, so watch out for potential profit-taking if the stock were to get to these levels – although a lot will obviously depend on how strongly or otherwise its earnings will compares with forecasts.
Apple’s technical bullish trend will remain intact regardless of its earnings, so long as the stock holds above the bullish trend line. However, a break below this and specifically the most recent swing low at $126.38 would be a bearish development. In which case, we may see a deeper correction towards the 200-day average around $106.00.
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