On April 28, 2021 Apple (AAPL) reported 2nd Quarter March 2021 earnings of $1.40 per share on revenue of $89.6 billion. The consensus earnings estimate was $1.00 per share on revenue of $77.1 billion. Revenue grew 53.6% on a year-over-year basis.
Summary
Apple’s (AAPL) weekly chart illustrates its most recent basing action. We’re anticipating a breakout from this symmetrical triangle base. RSI is rising and MACD will cross if price action continues along its current bullish trajectory.
Apple – The Anticipated Breakout
Apple (AAPL) aside from stellar earnings, also announced it had a big-spending plan, with approximately $90 billion in Apple stock buybacks.
“We’re earning a tremendous sum of money, and we really have no option right now.” – Jamie Dimon
Monday appears to be Day One in the anticipated break out that we are looking for, similar to that in April, after the 3-4 week consolidation that printed in March.
Price action was bullish from the opening bell and volume was above average.
We also see Bollinger Bands expanding in this 60 minute Apple (AAPL) chart.
RSI is rising and above the 50 zone.
A break above 133-134 would be ideal.
The Apple (AAPL) daily chart shows the recent pullback in February and again in late April. This consildation is providing a launch pad for price action this time around.
Over the past few weeks, the stock has drifted lower into its current “cup” and even larger “symmetrical triangle” base. MACD and Stochastic oscillator are bullish. Volume shows institutions have been busy buying shares.
What caught our attention was similar comments from JPMorgan. “We’re buying back stock because our cup runneth over,” JPMorgan CEO Jamie Dimon told analysts April 14. “We’re earning a tremendous sum of money, and we really have no option right now.”
CEO’s have few options to avoid the tax man. Watch for the Apple breakout.
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Happy Trading,
Vinny
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