Apple’s stock could soon see a wave of positive catalysts, according to one trader. Four things in particular make AAPL a particularly attractive buy ahead of its June 7 worldwide developers conference (WWDC), TradingAnalysis.com founder Todd Gordon told CNBC’s “Trading Nation” on Thursday.
1. Fundamentals: Apple is expected to unveil new operating systems for devices including the Mac, iPad, Apple Watch and Apple TV at its annual developers conference, which Gordon sees as a possible boon for the stock.
2. Market dynamics: Though rising Treasury yields have put pressure on the technology trade in recent weeks, that correlation may be weakening, Gordon said.
3. Sector rotation: He says a chart showing the sector SPDR ETFs for financials, materials, discretionary and tech rotating in and out of favor is showing an improving outlook for tech.
4. Technicals: Apple’s stock has also been forming a pattern that plays into Elliott wave theory, a type of predictive technical analysis based on recurring price movements, Gordon said. “It looks like we could begin to push higher from this consolidation pattern,” Gordon said… “I think the upside, using multiple projections that we use, gets you up just south of $200 in Apple. I think that could happen over the next six to nine months in Apple.”
MacDailyNews Take: from Gordon’s lips to Mr. Market’s ears!
More info about Apple’s WWDC 2021 here.
I agree with three of those four drivers for AAPL, but Elliott Wave Theory fundamentally comes down to believing that past trends can be used to predict future trends.
That many be true in some areas, but I wouldn’t put much faith in it when it comes to Wall Street.
Not so fast. Don’t buy AAPL it if you are approaching retirement age and need it for income. It pays onky 0.22 cents a share, a paltry 0.69% dividend rate. Don’t have enough money to pay a decent dividend but they had enough to give $250 million to some self-appointed, BS virtue-flashing Climate Change group. Time to diversify, I say…….