How to trade Apple as reports suggest a possible iPhone delay


Apple (AAPL) – Get Report stocks have rebounded sharply in recent trading sessions. In fact, even a large part of the stock market has.

It’s as if Apple reportedly delayed its iPhone 5G by a month or two. Remember, much of Apple’s stock gain came when the company posted better-than-expected sales for its current iPhone range, devices that many investors simply viewed as a bridge between previous training and the launch of 5G.

Apple even predicted that it could reach 5G sales of 100 million units. Now, the company is concerned that consumer demand is dropping for smartphone updates as coronavirus spreads worldwide.

Wedbush analyst Daniel Ives even went so far as to say that it is “extremely unlikely” that Apple will launch an iPhone 5G in September or October. In fact, it only puts a 10% to 15% chance that Apple throws in that time frame.

Investors are moving forward with the share price up around 3% on Thursday, although it is worth noting that the gain is lagging behind the 4.5% advance in the S&P 500 index. closer look at the charts.

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Exchange of Apple shares

Daily Apple stock chart.

Agile traders had a great opportunity in Apple stocks when stocks dipped below $ 220 last week. This brought stocks to the $ 215 level, which was the breakout level since September.

Note on the chart how this level went from the May and July resistance to the October and March 2020 support. We saw a rapid rally of $ 40 from that point as stocks recovered $ 250 and the 200-day moving average .

There are also other developments to consider.

Apple stocks have broken out in a strong downward trend, marked by a blue line on the chart. The Relative Strength Index (RSI), which measures how overbought or oversold a stock was, was also able to overcome the downward resistance (upper part of the graph, purple line). The reading of the MACD, which measures the momentum, is also beginning to turn in favor of the bulls (at the bottom of the graph, blue circle).

In short, the bulls have several pricing metrics and actions that work in their favor. That said, investors are definitely not out of the woods yet.

Apple stocks could certainly weaken once again. All you need is a deep breach in the S&P 500 and the shares may fall again. Below the 200-day moving average, investors should be cautious. A drop below $ 240 could narrow the gap down to $ 220 on the table.

On the positive side, a move above $ 256.39 – the 38.2% retracement for the 2020 range – could trigger a move up to $ 270, roughly where Apple stocks will hit the 50% retracement.