- Shares in Apple open lower after reports of poor demand for iPhone 8
- The stock has potentially reversed after recent gains
- Drop has weighed on the broader US100 index
Worrying reports surrounding the production of the iPhone 8 have seen Apple’s stock open lower this afternoon, with shares currently off by more than 1%. According to an ECD report Apple may have requested a 50% cut in orders for the iPhone 8, and the news has been met with some early selling in the stock. Whilst the report is not unequivocally negative for Apple, as some investors may believe that consumers are putting off purchasing the iPhone 8 for the more expensive higher end iPhone X model which is yet to be released the price action in the stock may be something of a concern.
The share price reacted negatively to the announcement of both phones back in September with a gap higher being met by a fairly large rejection candle. The market dropped by around 10 points before finding support at 149 in the middle of September and since then there’s been a decent recovery. However, today’s soft open threatens to curtail the latest move higher and send the market back down towards the prior support of 149. Some investors may have caught wind of this news early with yesterday actually seeing some selling and a beraish engulfing candle of sorts printed on D1.
Apple has opened lower today after reports of a lack of demand for its new i Phone 8. Source: xStation
The drop in Apple can be seen in the US100 index, with the tech giant accounting for almost 12% of the benchmark. We noted yesterday that the US100 had made a bad start after the cash open at 2:30PM and today’s price action has been similar. The opening bell of Wall Street has once more seen some sizable selling and price has fallen to its lowest level of the week just above 6050.
The US100 has sold off on the cash open for the second day in a row. Source: xStation
On a slightly longer term chart (H4) the market remains in an uptrend despite the recent declines. 6050 is a possible support zone but if price drops through here then 6020 would be exposed. As long as price remains above 6020 then the latest break higher remains valid but a drop below 6020 would change the outlook somewhat and could lead to a larger decline.
Longer term the market remains well supported unless there is a break below 6020. Source: xStation