What Apple’s stock chart looks like at the start of the iPhone 13 rollout
Apple Inc. AAPL has started pre-orders for its new iPhone 13 models and the phones will be available in stores from September 24. Over 3 million of the new iPhone variants have already been pre-ordered and BofA Securities expects 210 million units to be purchased in 2022.
Forecasts for 210 million units are down 13% year-over-year and, unlike EV makers, Apple is expected to suffer from delivery delays due to component shortages.
See also: Is Apple’s stock overvalued or undervalued?
The Apple chart: Apple stock fell on Monday and lost support at $144.53 amid overall market weakness. When Apple reached a support zone below $141.37, the bulls entered and bought the decline and the stock printed a daily candle with a long lower wick.
The gap left above is good news for the stock as gaps close 90% of the time. It is likely that Apple will move up to the $145.67 area in the future to fill the empty trading range.
Monday’s bearish selling pressure sent Apple’s Relative Strength Index (RSI) down to 35%, putting the stock near oversold territory. The level is a buy signal for technical traders. When Apple’s RSI fell to 35% on May 12, the stock reversed in an uptrend and rebounded 30% to an all-time high of $157.26 on September 7.
The above-average bearish volume over the past two trading days may give technical traders pause as it indicates that there is downward momentum. On Monday, 123.47 million Apple shares were traded against a 10-day average of 102.67 million. Bullish traders will want to watch consolidation at least over shorter time frames to get perspective on future direction.
Apple is trading below the eight-day and 21-day exponential moving averages (EMA), with the eight-day EMA trending lower than the 21-day, both of which are bearish indicators. However, the stock is trading around 6.5% above the 200-day simple moving average, indicating that long-term sentiment is bullish.
- The bulls want to see Monday’s price action mark a new low for the action and either for consolidation on low volume or big bullish volume to come in and bring the action back above the $144 level. . If Apple can regain the support level, it will close the overhead gap and then have the option to move up towards $150.
- The bears want to see big bearish volume pull Apple stock below the support at $141. If the stock breaks the level, there is no further support until just above the $135 area.