As expected, the much-anticipated iPhone 6 launch sparked additional volatility for Apple shares in yesterday’s New York trading session. Price spiked around during the actual keynote address, only to settle around its current support levels at the end of the trading day.
As mentioned in a previous update on Apple shares, the stock has made a correction off its recent highs at the $102.50/share level and is currently finding support at an area of interest. How the latest Apple product offerings are received could have a strong impact on whether or not the price corrects lower or resumes its climb from here.
Apple Shares Outlook
MACD appears to be indicating that price is still undergoing selling pressure, as the indicator continues to grind lower. RSI, on the other hand, is already hovering around the oversold zone and suggesting that a bounce is likely to take place for Apple shares sooner or later.
Meanwhile, the 50 simple moving average is fulfilling its role as dynamic support for price action as it has done so in the previous Apple shares pullback. A daily candle close above the $98/share area could render the latest spinning top candlestick as a valid short-term reversal signal and show that the correction is over.
As with previous hardware and software releases, reviews have been mixed on the iPhone 6 launch and its impact on Apple shares. For some market analysts, other releases such as the Apple Watch and iPhone 6 Plus have been far from impressive, yet it remains to be seen how the consumer market will react. Previous releases from Apple have led to stock volatility in the near-term but eventually resulted to strong uptrends later on.
For now, the iPhone market has been the company’s major source of revenue and it will be interesting to see how they can add to their profits with the Apple Watch. Bear in mind that the iPad launch a few years back was also greeted with speculation but ended up providing new revenue streams for the company.
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