Rotten Apple heading into the holidays
Joe Perry December 2, 2021 10:03 AM
If Apple continues to have supply chain issues and sees a lack of demand for its iphone 13s, the double whammy should continue.
On Wednesday, Apple (AAPL) reportedly told suppliers that there may not be a boost in demand for its iphone 13 heading into 2022 as supply chain issues ease. Apple had originally let investors know that due to problems throughout the supply chain, the production goal will be cut. However, now the bad news is compounded. Letting suppliers know that they may not have to pick up the pace once bottlenecks ease will not only set AAPL back in its forecasts, but it will also set back its suppliers who were previously looking to work double-time to pick up the slack once the supply chain problems are over.
Apple’s share price reached new all-time split-adjusted highs yesterday 170.30, before reversing and closing down 3.62%, near 164.65. Price had been in an orderly, long-term upward sloping channel since August 2020 before breaking above the top trendline yesterday. Price hit the 161.8% Fibonacci extension from the September 7th highs to the October 4th lows at 169.00 before reversing lower and moving back into the channel. Note the RSI was in overbought conditions as well. The candle on the daily timeframe was a shooting star, an indication of a reversal.
Source: Tradingview, Stone X
On a 240-minute timeframe, price has been forming higher highs and higher lows within the channel (green line). Today, price gapped lower at the open to 160.25. First resistance is at the gap fill and the top trendline of the long-term channel near 164.53, ahead of yesterdays highs at 170.30. First support is at the November 26th lows and September 8th highs near 156.37. Below there is the 50 Day Moving Average at 154.61 and horizontal support at 153.16. The 200 Day Moving Average is the next support level, down at 148.95. Pay particularly close attention if price reaches the trendlines at 145.09 and 137.07!
Source: Tradingview, Stone X
If Apple continues to have supply chain issues and sees a lack of demand for its iphone 13s, the double whammy should continue. However, don’t forget Apple has other products as well, one of which may be in the EV market in the future!
Learn more about equity trading opportunities.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.