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Tuesday 25 June 2013

Stocks to watch- Apple

After Apple was downgraded by analysts yesterday, due to concerns about iPhones not selling well, it dipped below $400 but managed to rebound to $402.5 at the end of the day
Low morale at Apple as its stock continue to drop, many are even considering leaving
More Apple employees are applying for jobs at Google, LinkeIn, Facebook, Hewlett Packard
Samsung beats Apple in another patent suit
Apple releases iOS 7 Beta today, iPad version arrived, this might boost Apple's stock instead
Which news will have a stronger effect today?
Can it hold $400 again?

If history is any indication, Apple was around the same price today as 17 April 2013 @ $402.8
Then it started to drop below $400-18 April, $392.05, 19 April, $390.53, (20-21 was the weekend), after the weekend, it started to rebound-22 April 398.67, 23 April $406.13
History suggests that if it drops below $400 again, it'll be a steep drop to $390 for at least 1 or 2 days before it starts to rebound
Will history repeat itself? When will it rebound, sooner or later than before?

Apple needs to at least drop below $398, yesterday's low, to reach $390
Then it'll be hard for it to rebound to $400 on the same day
We'll target around $393-$398 before considering selling Apple for end of day expiration
Although $395 might become a temporary support, so it might be a more definite sign if we see that support broken

Yesterday, when it dropped below $400 at 11:16am EDT, it stayed below until 11:53am
There's a less than 30mins window opportunity for us to cash in on it, but it's quite risky as it's very short term
Should we also try a less than 30mins expiration today if it drops below $400 again?
As Apple can be quite weak after today's news, it might even take longer for it to rebound to $400

In the end, these are just speculations, we'll need to watch the market closely to determine its actual price movement

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