Shares of Apple (AAPL) – Get Apple Inc. (AAPL) Report fell $5.10, or 3.31%, to end at $148.97 Friday, as investors digested recent news and prepared for the iPhone event next week.
On Sept. 14, the company will hold a virtual event to introduce the new device. Dubbed “California Streaming,” it’s expected that Apple will introduce its new iPhone and Apple Watch.
However, Apple remains in the news for other reasons, too.
After hitting new highs earlier this week, the stock declined Friday after news of a court ruling in its case with Epic Games.
That’s alongside a report that was published by well-known Morgan Stanley analyst Katy Huberty, who made the case that Apple stock is “compelling” ahead of its upcoming event.
Like I said, it’s a lot of information for investors to digest. Let’s take a look at how the charts are setting up.
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Trading Apple Stock
Daily chart of Apple stock.
Chart courtesy of TrendSpider.com
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Each time Apple has reported earnings this year, it has resulted in a selloff. Unfortunately, those selloffs would come right as the stock was at or near all-time highs. Those events are marked on the chart with blue arrows.
It was even more frustrating that Apple blew out analysts’ expectations each time, yet the stock sold off anyway.
However, rather than a massive dip following the most recent report, the stock only pulled back to the $145 area, near the prior high. It also held the 21-day moving average as support.
The stock has since pushed up through $150 and earlier this week, hit new all-time highs.
For now, we’re getting a dip back down to the key $150 area and the 21-day moving average. Aggressive bulls can buy this dip ahead of the company’s event on Tuesday.
If we break Friday’s low, investors may consider stopping out of the trade and buying on a potentially larger dip down to the 50-day moving average or the $145 area.
Below $145 may put the $138 level and the 200-day moving average in play.
Should Apple trade up through the all-time high at $157.26, the 161.8% extension is in play up near $160. Above that mark could put the $172 to $175 zone on the table, depending on how investors react to the event.
For what it’s worth, September is by far Apple’s worst-performing month, up just three of the last 11 years for the month.