Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Week Ahead Preview: 22nd of April

News

P&G shares rise despite Q3 sales miss

News

Gold continues to shine amid geopolitical worries

News

Crude oil dips for 3rd session after supply data

News

Is there an AI upside for AMD?

News

GBP/USD recovers following wage report

Trends & Analysis
News

Week Ahead Preview: 22nd of April

News

P&G shares rise despite Q3 sales miss

News

Gold continues to shine amid geopolitical worries

News

Crude oil dips for 3rd session after supply data

News

Is there an AI upside for AMD?

News

GBP/USD recovers following wage report

Asset Watch

Is Apple nearing another buy signal?

Tuesday, January 9, 2024

It’s been a bears’ paradise across U.S. equities as the New Year has gotten off to a rough start. While Apple felt the brunt of investors’ wrath, the recent suffering could be a buying opportunity.
We noted the importance of Apple’s 50-week moving average in a previous edition. In late 2021/early 2022, the stock recorded a sharp rally and pullback, bounced near the 50-week MA, and then roughly recouped its previous highs. The analysis proved somewhat prescient as a similar development occurred from mid-to-late 2023.
Back then, investors sold the stock due to negative headlines about Chinese government officials reportedly being banned from using iPhones. Now, recent downgrades from Barclays and Piper Sandler are the latest downside catalysts. The latter wrote:
“We are concerned about handset inventories entering into 1H24 and also feel that growth rates have peaked for unit sales… [while a] deteriorating macro environment in China could also weigh on the handset business.”

Yet, with a third iteration unfolding, the white arrows highlight how, unless major events occur, the 50-week MA (near $176) is often a reliable support level. To play it, you could average into the stock and invest 1/3 of your position maximum. That way, you profit if the stock bounces immediately but still have capital left over to obtain a lower average price if Apple keeps falling.

Will the optimists benefit from another overreaction, or is Apple headed materially lower?


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.