Apple is holding up well on Wall Street by supporting US tech stocks in a difficult phase. The company highlighted solid fundamentals after its record $123.9 billion in first-quarter sales beat Wall Street estimates even in the midst of a supply crisis. Profits also outpaced projections, propelled by new products including the iPhone 13. CEO Tim Cook blamed supply problems for the iPad’s lack of growth, saying these problems were even more serious than in the previous period. But the company has seen records in cloud, music, video, and payment services. The buybacks of the company started yesterday in support of prices. The Fed confirmed a rate hike and the cloud dot plot is aligned with the market which expects a total of 7 hikes this year. In fact, the scenario is already discounted by the market; tech stocks rebounded strongly yesterday.
Apple [AAPL.O] yesterday closed at $170.2 (+ 0.8%). Today, in pre-trading, it is flat. The stock reached both our targets of $160 and $170. The long strategy was opened on March 10th. We take profit and monitor for any further long openings on the stock which still remains with a good technical picture. Therefore, you can strategically close the position to reopen a long or break with a strength of $170 (volumes and volatility) or after some profit taking.
We recommend going LONG on the stock by buying the Leverage Shares 3X APPLE ETP (ISIN: IE00BK5BZS07) also listed on Borsa Italiana or 2x TP (ISIN: IE00BF03XJ35) on exceeding $170 (after closing and only if with volatility) or after any taking of profits (we monitor any downside to seize opportunities). From an investment perspective, however, we highlight the stock tracker certificates with 1x leverage (ISIN: XS2337099563).