APPLE, Daily
We all have an opinion on Apple, one of the world’s largest corporations and most recognized brands, and they are loved and loathed in equal measure it seems. They report their second quarter earnings today after the close of the New York stock exchange and the numbers are expected to be poor. It is likely to report its first year-over-year decline in iPhone sales since the product was launched in 2007. The iPhone now accounts for over 65% of all Apple revenues and with sales of other products such as the iPad and MAC already slowing and Apple Watch seemingly being out sold by competitors the emphasis is more focused on the software and services platforms.
Apple TV was delayed last year, the tie up with IBM and Cisco to break in to the corporate market (along with the iPad Pro) seems to have stalled, the normal rally in the share price along with strong sales in the final quarter of 2015 did not materialize, and analysts are rather skeptical following poor first quarter earnings in January.
The charts are also telling a similar story. The share price closed yesterday at 104.92 – right on the lower Bollinger band of the Daily chart and the 38.2 Fib level, next support is at 104 (50 DMA) , 102.50 (50 Fib) and 100.00 (61.8 Fib and Psychological round number).
The Weekly chart looks equally bearish with the 20 MA and 50% Fib retracement offering support at 102. 53.
On the upside 108 and 113 would need to be broken to reestablish the uptrend, with strong resistance at 118.
Let’s see how the numbers are received by the market today, before we take any action. There is often significant over reaction (both positive and negative) in the immediate aftermath of earnings announcements as we saw with Alphabet (Google) and Microsoft last week. Apple is always one to watch because of the sheer size of the company, its track record and the impact it can have on the overall US indices. It is probably too early to be calling time on Apple as a growth stock, but time will tell.
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Janne Muta
Chief Market Analyst
If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:
http://www.topforexbrokerscomparison.com
About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
“My mission is to help you to become a confident and successful trader”
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.