Apple
The Department of Justice is expected to sue Apple (AAPL) today for antitrust violations. The case is related to the company blocking competition from accessing hardware and software features of the iPhone.
This isn’t Apple’s first time around with an antitrust suit, but the timing comes as Apple appears to be struggling with new product development and decreasing demand for their devices.
Most recently, the company saw a large decline in iPhone demand in China as competition from Huawei heated up. The fundamental challenges have pressured AAPL stock to losses of 8% for the year.
Today’s weakness against the market comes as the stock is attempting to break above its 20-day moving average. This trendline represents traders’ view of the stock’s short-term momentum, which has been bearish for Apple since the beginning of the year.
Failure to move above this resistance is likely to push Apple stock back to $165.
Micron
Micron (MU) reported a significant earnings beat last night, resulting in the stock trading 18% higher this morning. While the stock has been trailing returns in the semiconductor sector in 2024, this report is expected to change that.
Shares surged through the $100 level to trade as high as $113.50 today, but a slight pullback is anticipated in the short term.
High volume around the earnings report suggests that the market may have overreacted to the news.
The stock has also broken above a key short-term technical indicator, the bollinger band.
It is common for a stock to experience selling pressure after a volume surge and breaking of key technical indicators.
Anticipated pullback for Micron shares is expected to be around $100-$105 before surpassing the $113.50 highs.
Canoo
Shares of Canoo (GOEV) are rallying 28% higher this morning following the announcement that the company’s Oklahoma facility has been approved as a Foreign Trade Zone (FTZ).
This designation helps Canoo avoid customs duties on vehicles sold overseas and defer customs duties on imported parts for products sold in the U.S.
Nick covered the stock a few days ago after a reverse stock split was executed to avoid delisting on the Nasdaq Exchange. This move, often viewed as a last resort, sparked the current rally, pushing the stock 244% higher in just five days.
Due to lighter trading volume, it is recommended to leave this stock for day traders as the shares may drop as quickly as they have risen. Overall, the stock is down 72% for the past year, despite the 244% rally this week.
About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.
