Market Analysis

Are falling sales pulling Apple’s stock down?

In early trading yesterday, Apple’s stock traded lower after reported rumors of weaker iPhone demand and a slowdown in service revenue growth.

Samsung Electronics issued a profit warning just last Friday, and this could have further increased the pressure on Apple’s stock. The situation surrounding the blacklisting of the Chinese company Huawei Technologies by the US authorities could dampen sentiment in the sector as a whole. The blacklisting could cause Huawei Technologies to deliver fewer products, which, in turn, could affect Samsung, as Huawei is Samsung’s largest customer.

If the trade war between the US and China continues, this could have a negative impact on global chip demand. On the other hand, Samsung’s problems may prove beneficial for Apple.

Looking at the chart, Apple’s stock is at an interesting point. The area around US$200, where the market is currently located, could be decisive for further development.

If the stock manages to defend this zone sustainably, the May high for the year, around US$213, could be the first significant resistance on the way north. If the market also breaks through this resistance upwards without any problems, the next structural resistance could be in the US$223 area.

However, if the US$200 zone proves too strong for bulls and the market pushes down, there may be support in the US$190 area. If this is not strong enough, further structural support could be found in the US$179 area.

The MACD oscillator is in positive territory and showed a Bullish crossing around June 6th. Currently, the MACD line and its trigger line are approaching each other. The histogram is dropping.

APPL.US - daily chart. Source: ActivTrader

APPL.US Daily Chart | Source: ActivTrader


Written by Daniel Schuetz, External Analyst, ActivTrades

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