Rotten Apple heading into the holidays

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 share price history in recent times

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 7^th highs to the October 4^th 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

Trade AAPL now: Login or Open a new account!

• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore

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 26^th lows and September 8^th 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.

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.