Strategic trade
Trade view / 05 May 2016 at 9:59 GMT

Apple set to outperform, Disney poised to slump

Trading Desk / Saxo Capital Markets
Australia
Instrument: AAPL:xnas
Price target:
Market price:
APPLE

Background: Since Apple (AAPL:xnas) announced disappointing earnings on 26-April, it has dropped over 10% and is now trading at a solid support level near 92. This level could prove to be a triple bottom as Apple has been struggling to break below 92 these past few days. Given the technical set up, we see a tactical buy opportunity if AAPL trades above the previous day’s high of 95.87.

Management and risk description: Until our profit target or stop loss is triggered

Parameters (for Apple)

Buy entry: Stop Limit 95.88 - 96.00

Stop: 91.88

Target 1: 98.71

Target 2: 103.91

Time horizon: Until our profit target or stop loss is triggered

1
Source: Saxo Bank
 
2
 Source: Saxo Bank

WALT DISNEY

Background: After completing a significant double top formation in 2015, Walt Disney (DIS:xnys) earlier this year broke a long-term uptrend which started in 2011. Since stocks in the US found a bottom in February, shares in Disney has managed to retrace back to this uptrend line and is currently experiencing a rejection. 

This retracement to the topside also coincides with a gap fill (105.07) and the stock is hovering at the 50% retracement level. On a daily chart, the stock most recently struggled to push above the 200 day moving average which signals buying momentum may fade and the trend may start to move south in the near future.

Management and risk description: Until our profit target or stop loss is triggered

Parameters (for Disney)

Sell Stop entry:
102.39
Stop: 106.09
Target 1: 100.00
Target 2: 90.00
Time horizon: Until our profit target or stop loss is triggered

4
 Source: Saxo Bank

3
 Source: Saxo Bank

— Edited by Michael McKenna and Clare MacCarthy

Non-independent investment research disclaimer applies. Read more
3y
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