Today, all eyes are on toward Apple’s launch event, which will  announce a new series of products, including a new smaller iPhone and an updated iPad. The event will be held at Apple’s campus in California and may have a notable impact on Apple stock.  This could be magnified as there are limited data releases today and liquidity is low as it is the first trading day of the week. Our outlook for Apple stock from technical point of view is as follows:


Apple traded firmly higher after forming a double bottom reversal pattern during last month around 92$ per share.


The theoretical target for this reversal pattern stands at 107.60 level and we expect prices to keep heading north in the coming sessions especially if the stock keeps trading above 100.00 psychological support.


However, Apple may face strong resistance soon as prices are likely to test the bearish trend line that comes from 123.80 peak, coupled with the 50% Fibonacci retracement of the same cycle.


Consequently, we expect the stock to find resistance around 108(50% fibo) and 109.50(December high) zone.


If they do, as is widely expected, unveil a cheaper iPhone this could boost Q2 sales especially in the developing countries. Technically, we expect additional volatility in today’s trading and we believe that prices should trade higher in the near-term towards the resistance zone before sellers move back into the market.


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