Apple dominated the headlines during the Asian session today with reports of the company lowering iPhone production on weaker demand and COVID lockdowns in China causing supply issues.
Despite the strong bounce from its October lows at 134.37, AAPL still underperformed the broader market. With US index futures currently pointing lower, there could be more losses on the cards today.
Friday’s bounce is an indication of significant amount of demand around these level, and longer-term investors may continue to find shares attractive at the current valuation. However, if today’s news is able to fuel a break lower, the stock could have a new low in its sighs given that the next major area of support appears to be at the YTD lows hit in June.
All trading carries risk, but it will be interesting to see if AAPL looks at risk of a new low this week, or if it can continue to hold support above the October low.
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