Apple is set to unveil its new flagship iPhone today. As a result, many traders will be actively seeking technical and fundamental reasons to buy some of Apple’s providers listed below. In addition to these catalysts, Apple (AAPL) is also looking pretty bullish, trading 162.95 pre-market.
Apple Event and Product Launch
The highly anticipated Apple product launch is coming at the right time, as the stock moves off major VBP support. A continuation day is set to unfold if pre-market price action continues to build. RSI is bouncing off 50 and pointing towards 70. Bullish volume was above average on Monday. Stochastic is turning from over sold and ATR is starting to trend upward.
Based on RBC Capital Market’s recent analysis, here is the list of the companies which derive a significant portion of their revenues from Apple.
- Dialog Semiconductor: 75 percent.
- Cirrus Logic: 66 percent.
- Foxconn: 50 percent.
- Skyworks: 44 percent.
- Qorvo: 32 percent.
- Advanced Semiconductor Engnrng: 31 percent.
- InvenSense: 30 percent.
- Knowles: 25 percent.
- Jabil: 24 percent.
- TTM Technologies: 20 percent.
- Taiwan Semiconductor: 16 percent.
- Pegatron: 15–25 percent.
- Broadcom: 15–20 percent.
- Qualcomm: 13 percent.
- Analog Devices: 10 percent.
- Amphenol: 10 percent.
- Intel: 3–5 percent.
- Flex: 3–4 percent.
- Nvidia: 3–4 percent.
Skyworks – IBD50 List
Here are some of the more bullish charts from the list above: SWKS FLEX and INTC all have attributes we like to see in new long positions. SWKS is about to break into the Kirby Price action is building above the 9/20ema as MACD remains above its signal line. Watch for volume today, and enter new positions with the (ToD) setup. We are considering a position.
FLEX was a new position yesterday, as price transitioned above VBP resistance levels. This momentum is setting the stage for a breakout of this recent channel consolidation above the 200ma. Stochastic, and RSI are trending higher, with MACD positioned above its signal line. ATR is set to turn higher.
Here is some additional winning stock picks mentioned by JP Morgan analyst Harlan Sur, who commented on the positive aspects of today’s Apple Event and Product Launch. Many of these stocks saw bullish flows yesterday.
Watch List Set-Ups
Many of the watch list stocks are set up as well. Alibaba (BABA), Applied Materials (AMAT) Facebook (FB) and Control4 (CTRL) are my favorites. HDB and CORT round out the top 6 winning stock picks.
Take your pick, as today should be a solid bullish day.