Market Analysis

A slippery slope for Apple?

For Apple, things are not running smoothly at the moment. The trade conflict between China and the USA is intensifying. On Monday, in response to the sanctions announced by President Trump, China announced that it would also impose punitive tariffs on US products. This again depressed the gloomy mood on the financial markets.

Then Apple was beaten in court on Monday. The US Supreme Court admitted a class action suit. The lawsuit concerns an antitrust issue over whether Apple’s App Store is an illegal monopoly and whether Apple is charging too much for apps.

The case has already been heard several times by subordinate courts and has now landed at the US Supreme Court. Nothing has been decided yet, however, a considerable litigation risk could accumulate for Apple if the company were to lose the case.

In yesterdays early trading, Apple’s share price fell way. The stock reached a significant structural level in the US$187 area. This zone could be decisive for further development in the coming days.

If the bulls manage to regain control of the market, a recovery into the US$198 structural area could be possible. If the market continues upwards through this barrier, then further resistance could be possible in areas of US$207 and US$215, respectively.

If the market continues its correction, there could be support in the US$178, US$170 and US$160 areas.

The MACD oscillator reflects the correction movement. The histogram is in negative territory; the MACD line has formed a negative cross.

AAPL.US - daily chart. Source: ActivTrader

AAPL.US Daily Chart | Source: ActivTrader


Written by Daniel Schuetz, External Analyst, ActivTrades

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