Apple Rebounds Ahead of iPhone Event
|Apple Inc (NASDAQ: AAPL) traded higher on Tuesday, after it hit support near the 216.50 barrier. The rebound came just a day ahead of today’s much-awaited launch event in which new iPhone models are scheduled to be unveiled. From a technical standpoint, the stock is trading above its long-term uptrend line drawn from the low of the 27th of June 2016, and also above a medium-term upside support line taken from the low of the 27th of April this year. So, having all these technical signs in mind, we would consider the outlook of the share to be positive.
We would expect the bulls to take charge again soon and aim for another test near the stock’s record high, fractionally below the 230.00 mark. Now, if they prove strong enough to overcome the 230.00 mark and aim for new highs, then we may see them setting the stage for the next psychological barrier, at around 240.00.
That said, although the stock may continue trading slightly higher after its opening today, in anticipation of the new products, it could slide on the event in a “buy the rumor, sell the fact” market reaction. Actually, this was usually the case in previous product introductions. Now, if indeed the stock slides, then we could see another test near 216.50, from where the bulls could take charge again. Even if that zone does not prove strong enough to stop the price from dropping further, we would still see a decent chance for the bulls to jump back in from near the 210.00 zone, or the aforementioned medium-term upside line.
We would like to see a clear close below 205.00 before we start examining the case for larger declines. Such a break could confirm the dip below the medium-term upside line and could initially aim for the 194.00 zone. Another break below 194.00 may carry more bearish implications, perhaps opening the path towards the 181.00 mark, or the long-term uptrend line drawn from the low of the 27th of June 2016.
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