Apple Inc Shares are the most valuable Shares in the world. iPhone sales contribute more than 60% revenue for the company. So new iPhone launch is an important event for the company shares. As traders and investors are waiting for the event with more optimism. The company Scheduled to release new iPhone 8 on September 11.
Apple stock has 3 major falls in history which are 2008, 2012 and 2015. iPhone 3G, iPhone 5S, and iPhone 6S/PLUS are the product launches for respective years. Importantly On the first iPhone Announcement day, the stock gained 8% and the Day after the announcement the stock gained 4%. iPhone 5S/C is the worst launch for the company as the stock fell 2% on the day of the announcement and 5% after the day of the announcement.
Apart from these two launches, all other were well inside the -2.5% to +2.5% price range. Interestingly apple inc Shares performed with the market. Generally, iPhone launch never changed the trend but temporary volatility is there.
I Don’t know whether market big expectations or low expectations on the new iPhone Launch. On Daily the stock down 4 days in a row. I think somebody knows something negative about the event. The stock has strong support around $156.50 which is almost one percent low to the Friday’s close. and Resistance is placed at $160 which is also has 1 percent high to the Friday’s close.
If the support is broken then the stock may fall to the levels of $148.50. If the stock breaks the resistance then the stock may rally towards the levels of 165.
As per the September 15 option table, the stock is more bullish at $148 to $150 range. Around $160 bears have the upper hand. On real-time, Option trend may change.
My Final Words:
The stock shows strong negative divergence on Daily charts. So one strong sell off is pending. If you are a high-risk trader sell the stock with $165 as stop loss. If you are a low-risk trader trim your apple stock holdings.