Apple shares could jump $15-17 amid soaring iPhone sales and investment in electric cars - Kakiforex | Forex markets for the smart money. Apple shares could jump $15-17 amid soaring iPhone sales and investment in electric cars Apple shares could jump $15-17 amid soaring iPhone sales and investment in electric cars

April 7, 2021

Apple shares could jump $15-17 amid soaring iPhone sales and investment in electric cars

 Shares of the US high-tech giants have received fresh impetus. Shares of Microsoft, Apple, and Tesla have risen in value over the last 5 trading days, having snapped a 1.5-month losing streak. Nevertheless, it is too early to speak about a trend reversal upwards. Today, let's discuss the ongoing dynamic of Apple stock and its prospects. In principle, the stock of the iPhone maker has been following the long-term bullish trend. For this reason, Apple stock is yielding minor gains, even below consumer inflation in the US. So, the company doesn't have to pay off fat dividends if the shares are always in demand among investors. Of course, its shares tumble from time to time. For example, in the early 2021, Apple shares slumped to $117 apiece from $144. However, we understand that such a decline is caused by a simple retracement or a downward correction. The burst of the market bubble is not the case here. In fact, any decline of Apple shares is not related to worse prospects of the company or a plunge in sales or profits. Thus, Apple shares are set to grow in the long term.


Experts predict that both Apple shares and market capitalization will resume growth in 2021. iPhone sales are set to keep growing. Besides, the company is getting ready to launch a new project, production of electric cars. Apple has not made any official statements yet, but mass media is spreading rumors about it. Perhaps some information has already leaked. All in all, experts predict that Apple shares will jump by $14-27. Meanwhile, its shares are trading under minor pressure because Foxconn recently reported on possible disruptions in supplies of spare parts for iPhones.


Another thing is that some analysts foresee a more serious advance in the price of Apple shares. For instance, Danny Ives, an expert at Apple business, reckons that its shares could surge as high as $175 apiece with the market capitalization swelling to $3 trillion. The analyst expects robust sales of iPhone 12 and highly successful sales of the future iPhone 13. Experts praise solid profits of its cloud business division. These bullish factors are likely to push up the company's revenue that logically will boost demand for Apple shares.


Unfortunately, the whole US equity market arouses concerns due to its dazzling rally during the pandemic. This actually contradicts the state of affairs under the crisis that has been raging across the global economy over the recent year. No doubt, the bubble is doomed to burst sooner or later. The issue of market bubbles has resurfaced among economists. Bubbles happen in financial markets now and then. When is the next?


Apple shares have been trading higher in the last three days. The price rose to $126 apiece from $120. Nevertheless, it is too early to speak about a new uptrend. First, the price has not been able to surpass the previous swing high of $127.17. Second, the price is capped upwards by the lagging indicator Senkou Span B at $127.00. In other words, two serious resistance levels almost coincide. It does not mean that the price will drop down by all means. There is a likelihood that the price will break through this level. If so, the odds are that the price will develop a rapid rally afterwards.