Major Levels in Apple Stocks Ahead of Launch Event, Traders Says

Major Levels in Apple Stocks Ahead of Launch Event, Traders Says

Apple is expected to announce several new products at its launch event on Tuesday, including the latest iPhone and Apple Watch models.

But the stock is seen in wait and see mode. Shares closed slightly higher on Monday, but were down 5% from record highs last week.

Ahead of the event, CNBC’s “Trading Nation” asked two traders for key levels to monitor the tech giant’s stocks.

“The stock has gone up about 20% over the past four months, so from my perspective this is clearly a potential ‘buy rumor, sell news in event’ event. [occurrence]Mark Newton, chairman of Newton’s advisers, said Monday.

Newton has identified a resistance channel over the past year that Apple may be struggling to break through. This group is currently between $ 156 per share and $ 159 per share. The shares closed just below $ 150 on Monday.

“We are now seeing negative momentum divergence not only on a daily basis, but also on a weekly and monthly basis,” he said. “You are looking at the RSI, the relative strength, which peaked at 88 about a year ago and the stock is also a counter-trend depletion, so I think it’s best to wait for a pullback before trying to hunt the stock at these levels. Est. “

Oppenheimer’s chief technical officer Ari Wald is more optimistic about Apple’s upside potential.

Wald said at the same time, “For us over the next three to six months, Apple is really checking all the boxes for us. It has an uptrend, bullish fundamentals, according to our analyst, which makes it even in a bullish sector. covers. ” Maintenance.

Wald is watching the 50-day moving average at $ 148.20 for information on Apple’s next move.

“If we get down from there, this will be the first time you’ve been below the 50-day mark since June. This would suggest that this correction needs to go further, ”he said.

But if Apple goes even further, Wald said it will give a buy signal for the title. He pointed to the previous closing peak in January around $ 143 as single resistance, which should now serve as support in the event of a major drop.

“After a long series of higher lows followed by higher highs, we would rather buy weakness than sell strength,” said Wald.

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