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Chart of the Week: major bullish breakout of key resistance in Apple shares

Apple

Over the weekend, Apple’s boss, Tim Cook, highlighted Apple’s symbiotic relations with China at his first visit to the country since the pandemic, despite increasing tensions between the US and China. Due to the Covid-19 disruptions in China and global headwinds, Apple’s revenue had its first-ever annual drop in the fourth quarter since 2009.

However, Apple’s shares rebounded swiftly from the January low and rose 23% year-to-date amid the tech share’s comeback in the first quarter as odds for the Fed to pivot on rate hikes are strengthened at the back of cooling inflation in the US and the recent bank’s turmoil. Investment funds seem to flee to big tech companies for safety as these stocks tend to endure the best with a solid financial background during market turbulence.

Apple’s first-quarter earnings’ estimated date is 27 April. With China’s reopening and signs of the Fed’s relaxation on rate hikes, Apple’s sales may recover momentum in the first quarter, despite uncertainties around geopolitical tensions and the bank’s contagion risks.

A major bullish breakout of key resistance

Apple’s shares had a bullish breakout of key resistance of 156, heading towards a potential medium-term target of about 176. Watch the Idea of the Day video below. 

 


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