APPLE SIGNS DEAL WITH CHIPMAKER, STOCK BULLISH
Apple is currently trading at 219.05-higher by about 1.10% as compared to the previous closing. In Pre-market trading on Thursday, the stock was trading lower by 0.43%. The stock has cut some of its earlier losses after the opening bell.
In recent news, Apple has agreed to buy a portion of chip supplier Dialog Semiconductor Plc’s business in a $600 million deal, the two companies announced earlier on Thursday. The deal will expand the iPhone maker’s chip operations in Europe. Under the deal, Apple is buying patents, a team of about 300 engineers, and Dialog offices in Britain, Italy, and Germany.
The two companies also said that half of the deal’s value, or about $300 million, is cash for the Dialog engineers and offices and the other $300 million is pre-payment to Dialog for supplying chips over the next three years.
On the technical front, the RSI is currently at 45.23% and suggests that the market can move in the upward direction. The current price is above the MA50. The current price is below the middle line of the Bollinger bands but is heading upwards.
Overall Bias is Positive and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION-LIMIT BUY AT 218.00 TAKE PROFIT AT 221.00 STOP LOSS AT 216.50