Market Analysis

Is Apple changing track?

The company from Cupertino is currently doing strange things. On Monday last week, Apple released its new iPad Air including iPad mini, on Tuesday the new iMac followed and finally on Wednesday, as a third surprise, the new generation of AirPods. Usually, such surprises are part of the Apple keynote address which takes place today, March 25th. What surprises does Apple have up its sleeve?

The rumors are going towards a streaming service. Whether this is intended to compete with Netflix or to immerse itself in another niche, we must wait and see. However, what we can read from the hardware presentations of the last few days is that Apple appears to have reached a point where hardware sales are limiting growth rates and seems to be about to change its business model. Apple has created a broad base of existing customers with its products. The challenge now is to keep these existing customers loyal to the company and continue to generate revenue and profits. A streaming service or a newspaper and magazine subscription system could boost the company’s cash flow.

What will it do to the share price?

Last week, the share price rose and surpassed the significant US$190 mark. The MACD oscillator is above its trigger line with a healthy gap between the two lines.

If the market breaks down through the structural level in the US$190 area, the first point of contact for the market could be the upward trend line. If this does not provide support, there could be support in the significant US$180 range structural level. If the market falls through here as well, it could find further support in the US$176.50 and US$170 zones on the way to the next larger structural level in the US$166.60 area.

However, if the bulls remain on track, there could be significant resistance in the US$200 range. Overcoming this could open the way to the next structural level in the US$212 area, which could then serve as resistance. Further up, in the US$223 area, there could be another zone of resistance.

AAPL.US Daily Chart | Source: ActivTrader

AAPL.US Daily Chart | Source: ActivTrader


Written by Daniel Schuetz, External Analyst


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