Apple (AAPL) WWDC preview: Macbooks, chips, and trend lines

See the key facts, themes, and implications for AAPL stock from WWDC 2021

Apple

One of the marquee events on any tech geek’s calendar is Apple’s Worldwide Developers Conference (WWDC), but with AAPL’s market capitalization rising above $2T to become the most highly-valued company on the planet, it’s been an increasingly important gathering for investors to monitor as well.

See the key facts, themes, and implications for AAPL stock below:

What is Apple’s WWDC 2021?

A week-long (virtual) gathering of Apple developers where the iPhone maker has historically announced new versions of its software and hardware products

When is Apple’s WWDC 2021?

WWDC will take place throughout next week, but the highly-anticipated keynote speech is scheduled for Monday, June 7 at 1:00pm ET.

What to expect from Apple’s WWDC 2021

Speculation about new products and operating systems is rampant, with rumors of new operating systems (prominently including iOS 15), a new line of MacBook Pros, details about the upcoming iPhone 13, and even a potential AR/VR headset among the most prominent areas to watch. There’s an entire industry of tech “insiders” reading the proverbial tea leaves of company press releases and job openings to speculate on new products, so we don’t have much to unique insight to add there. However, after weeks and months of speculation about new hardware, investors are clearly pricing in a chance of a new product release, so if there are no new announcements on that front, AAPL stock may see a kneejerk reaction lower on Monday.  

The longer-term theme to watch will be Apple’s transition from using Intel’s CPUs to Apple’s own custom-designed silicon chips. The company is halfway through a 2-year roadmap for the transition, so any hints that transition may be running ahead of schedule could be a bullish factor for the stock.

AAPL Technical Analysis

Turning our attention to the AAPL chart, it’s clear that the world’s largest company has lost its post-COVID bullish momentum. Over the last six months, the stock has essentially been constrained to a sideways range between $120 and $138, with only short-lived forays beyond that range.

That said, the prolonged consolidation has allowed the 200-day exponential moving average time to “catch up” with price, and prices appear to be finding support at a rising trend line off the July 31 lows, so bulls have some reason for optimism moving forward, especially if the WWDC announcements are well-received.

Source: TradingView, StoneX

As long as the stock holds above its trend line, bulls will favor a rally toward the top of the range in the upper-$130s. On the other hand, a disappointing WWDC could break that trend line and expose the 200-day EMA and bottom of the year-to-date range near $120.00 next.

How to trade with City Index

Follow these easy steps to start trading with City Index today:

  1. Open a City Index account, or log-in if you’re already a customer.
  2. Search for the market you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. Place the trade.

More from Tech Stocks

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.