Last year, during Apple’ Launch Event, for first time every, three iPhone versions were introduced, one of which was the iPhone X for $1000 to celebrate the 10th anniversary of the first iPhone.
Reports indicate that Apple will introduce a cheaper iPhone X with an LCD screen, called the iPhone 9. Other phones that might be introduced are a better version of the OLED iPhone X as well as an OLED phone with a 6.5-inch screen. At least one of these could be called the iPhone XS, and the larger model may be named the iPhone XS Plus. Apple is also expect to announced an update to the Apple Watch with a larger screen. Other announcement possibilities include new AirPods, an updated iPad Pro with FaceID functionaility, AirPower wireless charging mat and a streaming bundled service.
Some Wall Street analysts, such as Katy Huberty, equity analyst at Morgan Stanley Research have upped their price target on Apple going into the event.
"We'd recommend buying shares ahead of the event or on any post-event weakness, as the median absolute and relative stock performance six months following an iPhone launch is 26.5% and 9.9%, respectively."
But will the Event be a buy the rumor, sell the news? As phones get more expensive and phone carriers continue to eliminate phone subsidies, customers continue to hold on to their older phones longer. Although the iPhone X was a major success, the question remains will Apple continue to sell phone at same pace as in recent years. And now, Apple has President Trump to deal with.
Wall Street analyst Wamsi Mohan said if Apple moved 10% of its iPhone assembly to the US, iPhone prices would increase 8% due to higher labor costs.
So here is how I would play Apple going into the Apple Launch Event…lets go to the charts.
First let me say, most of my successful trades have come from trading in the same direction of the trend. When looking at the Apple chart, the trend is clearly up. On the weekly timeframe I see buyers at $216, $206 and $185.
The three weekly demand zones line up nicely with some commonly used fib extensions. Buyers stepped in yesterday and bought Apple at the $216 in anticipation of the Apple Launch Event. If price returns to this level, wait for confirmation that price wants to go higher because I don’t know if there are any more buyers at this level. If you are a conservative investor, the chart suggest to wait for a deeper pull back, to the $206 level (50% retracement), but the better level is at $185 (88.6% retracement).