Fundamental Analysis
Apple announced its earning last night and blamed China for any ground it lost. There is no doubt that China has been a major player in Apple’s flagship product- iPhone. The economic slowdown in the country and the ongoing trade war aren’t making things any better. The company announced $5 billion of revenue loss as its sales fell 27% during the holiday quarter. However, investors were pleasantly surprised about the services revenue for the company which came very strong and reached an all-time high of $10.9 billion. The company’s revenue from Mac and Wearables, home and accessories also came strong, it grew 9% and 33% respectively.
Technical Analysis
Speaking from a technical perspective, the price has broken its downward channel which confirmed that the downtrend is no longer in play. The price has jumped above the 50-day moving average (shown in green) which further strengthens the above statement. However, in order for us to have the final confirmation, the price needs to move the 100-day moving average and only that will start a strong uptrend for the price.
The support and resistance are shown by the horizontal green and red lines respectively.
