Is this the start of the equities rebound?

Major US stock markets continued to move in the downward trend formed in the previous weeks, even though closed in positive territory on Tuesday. With the markets in green, traders may be hoping for a decisive change in global negative sentiment and a more risk on approach. In this report, we will detail fundamentals of three US well-known companies, giving the most recent and important developments surrounding them. At the end a technical analysis of one of the stocks selected will be presented and levels will be identified.

Disney moves higher on new trailer release

Walt Disney Co (#DIS) the worldwide entertainment company headed the list of the gainers under the Dow Jones on Wednesday, after it surged by +4.01% and closed the session trading at $134.20 per share.  On March 15, consumers got a first glimpse at the new Marvel Studios’ Ms. Marvel, original series with a promising trailer. The show is to premier on June 8, 2022 and will be available exclusively on the Disney+ streaming service. As the ‘Ms. Marvel’ cast consists basically of teenagers and young adults, it could be a show that is targeting the younger generation of consumers. Disney’s online streaming service seemed very capable of attracting major attention in the last part of 2021 and early 2022.

According to Disney’s earnings for its first fiscal quarter ended January 1, 2022 the company added 11.8 million Disney+ subscribers. Disney seems to be consistently convincing a significant amount of people for its online streaming service, yet the question remains, can it grow them even further? Moreover, in the near future Disney is expected to create and offer cheaper packages that will include advertisements. The cheaper packages have the potential of increasing the subscribers to its online streaming service even further. On a year to date basis Walt Disney Co (#DIS) is down by -13.36% and its 52-week price range is currently between $128.39 and $198.39.

Tesla captures the scene with price changes

Tesla, Inc. (#TSLA) the electric vehicles and sustainable energy product manufacturer was also in green territory on Tuesday, when its stock rose by +4.63% and closed the normal trading session at $801.49 per share. On Tuesday headlines from various sources indicated that (#TSLA) will be increasing its prices in China and the United States after CEO Elon Musk reiterated that the U.S. electric carmaker was facing high purchasing prices in raw materials and logistics. Rising commodity prices are not Tesla’s issue solely; it is a matter that is currently affecting the markets on an international basis and could remain with us in the short to medium term. Even though the price increase may perhaps repel Tesla’s investors for now, the news may not be as negative as some may think.

First in the past years, Tesla has managed to create a solid brand name and reputation. It could be very difficult for Tesla’s brand to be hit at this point since demand for Tesla’s automotive products remains significantly strong. The company has managed to increase sales both on a quarterly and yearly basis as indicated in the Q4 2021 earnings results. Most impressive however, was the fact that Tesla in 2021 delivered a total figure of 936k vehicles of Model S/X/3/Y which is higher than the 930k produced. Then again Tesla’s business could be impacted by shortage of materials and slow manufacturing operations in the meantime. On a year to date basis Tesla, Inc. (#TSLA) is down by -24.12% and its 52-week price range is currently between $546.98 and $1243.49.

Apple facing new challenges in China?

Apple Inc. (#AAPL) mostly known for its designs and manufacturing of smartphones, personal computers, tablets, wearables and accessories, followed the general market movement upwards on Tuesday. Apple’s shares advanced by +2.97% and finished the session trading at $155.09. China remains the central production hub for Apple’s devices now. Thus, its business and performance depends on the ability of its major supplier Foxconn to deliver. Yet as was widely publicized in the past days, a new large wave of covid-19 cases was found unexpectedly in China. In order to control the spread of the virus, Chinese authorities have set new measures including quarantine and travel restrictions.

It maybe challenging to estimate precisely the impact on Apple’s production schedule, yet the risks remain elevated. On a separate note, on March 15 several media sources provided some information on Apple’s new iPhone 14 series. iPhones are Apple’s most valuable product and contribute substantially to its success and profitability. Any news related to the new iPhone 14 series could provide interest for traders and consumers. According to Apple’s Q1 2022 earnings results iPhone net sales were up 8.4% compared to the same quarter in 2021. This information highlights how important iPhones are for Apple. On a year to date basis, Apple Inc. (#AAPL) is down by -12.66% and its 52-week price range is currently between $118.87 and $182.90.

기술적 분석

#TSLA H1

Tesla’s share price remains in a downward trendline that has commenced since the start of the year. Yet, since the last days of February, Tesla has been trading within the (R2) 885.00 and the (S3) 710.00 range. The (S3) 710.00 line was visited on the 24  of February. On the 14  of March the (S2) 755.00 was tested after a short downward trend, while the price action rebounded higher and tested the (S1) 785.00 on the following day. If Tesla’s share is to move upwards, we could be seeing the (R1) 840.00 becoming a target. In a strong bullish movement, the (R2) 885.00 which is the highest level reached so far in March may be revisited. Finally, we note the (R3) 925.00 which is our highest resistance for this analysis. In our opinion, Tesla could be in a downward trend line with some sideways tendencies. The RSI indicator below our chart is moving nearby the 50 level possibly mirroring the sideways tendencies mentioned before. 

이 기사와 관련된 일반적인 질문이나 의견이 있으시면 저희 연구팀으로 직접 이메일을 보내주십시오 research_team@ironfx.com

면책 조항:
본 자료는 투자 권유가 아니며 정보 전달의 목적이므로 참조만 하시기 바랍니다. IronFX는 본 자료 내에서 제 3자가 이용하거나 링크를 연결한 데이터 또는 정보에 대해 책임이 없습니다.