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Apple Higher on Debt Ceiling Optimism
Apple shares are trading higher ahead of the open today with the pre-market price putting the stock at its highest level since early 2022. The general improvement in risk appetite through the week has helped drive stocks higher with tech stocks among the biggest beneficiaries. Apple shares have been on a solid bull run this year trading around 40% higher from the initial 2023 lows. Better-than-forecast Q1 results helped drive the rally onward recently with earnings and revenues both coming in above expectations.
Bullish Outlook
Looking ahead, Apple shares look poised to gain further. Optimism over a potential US debt-ceiling deal is creating a positive backdrop for the stock which should move firmly higher if a deal is confirmed. Beyond this issue, the focus will then be on the Fed. While pricing for the June meeting has taken a hawkish skew recently, traders are still expecting the Fed to pause beyond June meaning that Apple should gain further through the summer as USD weakens. Only a material shift in this narrative, such as US CPI spiking higher, will alter this bullish view.
Technical Views
Apple
The rally in Apple stock has seen price trading up around the 176.14 area resistance. Underpinned by the bull trend line off YTD lows, the focus is on a continuation higher while the 167.45 level holds below as main support. Looking above, 182 is the main objective for bulls.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.