Apple stock point to higher opening after the company won the court fight against 15 billion EU tax order. In 2016 the European Commission (EC) said Apple (AAPL) had benefited from illegal state aid after two Irish tax rulings that reduced its tax obligations the last two decades dropping to record low of 0.005% in 2014.
The General Court, one of Europe’s top courts, rejected EC accusations because the Commission did not succeed in showing sufficient evidence to the requisite legal standard that there was an advantage for the purposes of Article 107(1) TFEU1, which refers to EU competition rules. Apple welcomed the decision as it came after long term appeals process against the Commission’s 2016 ruling. Apple said that paid more than $100 billion in income taxes around the world the last ten years and tens of billions in other taxes.
Apple welcomed the decision as it came after long term appeals process against the Commission’s 2016 ruling. Apple said that paid more than $100 billion in income taxes around the world the last ten years and tens of billions in other taxes.
Investors now will focus on the quarterly earnings which will be released on July 30, but having cleared the 15 billion tax penalty earnings can boost the stock price. For the third quarter analysts expect 51.80 billion in revenues and $2.02 earnings per share.
Apple ended yesterday 1.65% higher at 388.23 after a volatile trading session. The technical outlook is positive, and the pullbacks should be considered a buying opportunity. A warning signal comes from the RSI (14) index, which is in the overbought zone since the beginning of July. A sharp correction can’t be ruled out.
On the upside, first resistance stands at 389.02 the high from yesterday’s trading session. A break above would challenge the all-time highs at 399.82. Next hurdle is the psychological mark at 410.
On the other hand, immediate support for Apple stands at 375.51 the daily low. The next support area will be met at 369.60 the low from July 6. More bids would emerge at 338.22 the 50-day moving average.
