Apple Shares Set to Shine at “Glowtime” Product Launch Event
Apple (AAPL) shares are expected to take center stage on Monday as the tech giant hosts its highly anticipated “Glowtime” product launch event. The event is set to unveil Apple’s new artificial intelligence (AI)-powered iPhone, along with other devices and major software updates, including Apple Intelligence-enabled iOS 18.
Since bottoming out from a correction in early August, Apple’s stock has rallied around 13% leading into Monday’s showcase. However, this rally raises the possibility of a “sell-the-news” event, as investment bank Morgan Stanley pointed out that Apple shares tend to underperform the S&P 500 on the day of an iPhone launch event but modestly outperform the market in the following three months.
To gain further insights into Apple’s stock performance, let’s take a closer look at the company’s chart and use technical analysis to identify key price levels that investors should watch out for during this significant event.
Large Price Swings After Hitting New Record High
After reaching a new record high in mid-July, Apple’s stock experienced a retracement of around 17% to an early June breakout area. However, throughout August, the stock made a significant recovery, regaining a substantial portion of the decline.
In recent sessions, the price closed below the 50-day moving average (MA), although trading volumes remain lackluster, indicating little conviction behind last week’s weakness. On Friday, Apple shares fell 0.7% to $220.82 amid a broader downturn for technology stocks.
Key Support Levels to Watch
As the event unfolds, initial selling pressure could test the $218 support area, which is marked by a trendline connecting a range of trading activity around the June peak and July trough. If the stock fails to hold this level, it could trigger a fall to $207, where investors may place buy limit orders near the June 11 breakout candlestick close. This area also aligns closely with the June pullback low.
A more significant downside move may see the stock retest last month’s low at $196. Bargain hunters could look for buying opportunities near the initial breakout area, which has potentially flipped from resistance into support. This level also sits in close proximity to the rising 200-day MA, adding further significance.
Important Resistance Level to Monitor
If Apple shares gain momentum leading into the event, they could encounter overhead resistance around $233. This level represents a range of similar trading levels positioned just below the stock’s all-time high (ATH). Investors may consider taking profits in this area.
In conclusion, Apple’s “Glowtime” product launch event is set to captivate investors and tech enthusiasts alike. While the stock has rallied in recent weeks, there is a possibility of a sell-the-news event. Investors should closely monitor key support levels at $218, $207, and $196, as well as watch how the stock responds to the important resistance level at $233.
Disclaimer: The comments, opinions, and analyses expressed in this article are for informational purposes only. The author does not own any of the mentioned securities.
