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Apple Hubs In India, Vietnam Next Year; China Exodus By 2025. Are Beaten Down Tech Stocks A Buy Now?

Apple (AAPL) plans on producing 25% of iPhones from India by 2025. Vietnam will build 20% of iPads and Apple Watch, 5% of Macbooks and 65% of air pods by 2023, according to reports.


China’s Covid lockdowns had hampered Apple’s production in November and December as ‘iPhone City’ wrestled with workers leaving the factory.

IPhone City made up to 90% of Apple products, according to estimates. But as Apple’s need to reduce its China dependence became apparent, many were of the opinion that it would take 8 years to move 10% of Apple’s China production out.

But that may have been far too conservative an estimate.

So with tech seizing growth spots, are tech stocks a buy now?

Stock prices are forward looking. That means their current prices anticipate future earnings and events. So even if the worst is not over yet for tech earnings, tech stocks may start anticipating a turnaround. Though there is no way of knowing when that will happen, there are some ways of making informed guesses.

Support levels are prices where stocks get a lot of buyers’ interest. It is one way of figuring out the beginning of an upward trend. Stocks tend to bounce from those levels at least a few times. It’s also important to watch levels where a stock finds it difficult to move further up. These resistance levels are hurdles to cross and may lead to a fresh falloff.

Apple Stock

Apple is trading at levels last seen in mid-2021 after it beat views on strong MacBook sales, though it gave a cautious outlook.

Google parent Alphabet (GOOGL) missed both revenue and earnings on poor ad revenue. Microsoft (MSFT) beat sales and earnings views but also showed lower net income. (AMZN) had lower operating and net income as well as decreases in cash flow. Intel (INTC) came in with earnings and sales above views but offered a soft outlook.And Apple (AAPL

Most tech stocks are trading below their 50-day moving averages. But they may very quickly clear that level and build bases with attractive buy points.

According to the CAN SLIM stock investing strategy, the best gains are made when stocks break out of sound price bases in strong volume, and when the stock market is trending higher.

Here are the key support and resistance levels to watch for as tech stocks price in future earnings and events. Keep in mind these are not buy areas, but rather areas to watch and monitor for bases and buy points.

Apple shares have been in a year-long consolidation and are testing support at the $130 level. Should the shares fall below, next support offers itself at $125 where the stock traded in March 2021. But should shares reverse on the news of the accelerated exit from its Chinese production plants, resistance at $180 remains a barrier.

Other Tech Stocks

Alphabet gapped down over 9% on strong volume below the psychological level of 100 after earnings. It was trading just below the 95 level, where shares found support on Sept. 30 and again on Oct. 13 before falling to the level again in October. Shares undercut that level this month.

The last time the tech stock found support at the current level was all the way back in February 2021.

That means that the stock has found solid interest at the level it is trading now. For now, it faces resistance around 100, which also coincides with the 10-day moving average. If shares should clear those levels they have another key level at 105, which took the stock to short-term moves to 120 or above four times since May. If the stock falls below the current level, the next support may be as low as 75. So far, there’s no sign of a base forming.

Microsoft fell through its support at 245. The next floor below could be around 215, where the stock found support in December 2020. However, the upside could take the stock to 295 where there may be resistance. The stock has fallen below its 50-day line. 

Amazon is not strictly a tech stock. It is part of IBD’s retail sector. But its cloud services makes the behemoth largely a tech play. The stock plunged below a support level of 101 after dismal earnings. It has traded thrice at this level this year before advancing to 146 in August. Shares seem to have trouble clearing the 200-day line and are below the 50-day moving average.  Amazon is a long ways from a proper buy point.


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