Can Apple Weather This Storm?

Has Apple AAPL stock found a support area around the low 170s area or does it have more room to fall? September is typically a rough month for the stock, considering it has had an average negative return of about three percent in September for the past 15 years. Apple bulls are hoping to get past this rough patch and start a quarter-four rally into 2024. 

Reports came out on September 18th that the iPhone 15 pre-orders are up 10 to 12 percent from the iPhone 14 pre-orders from 2022, even though it has only been a few days by this point. This is good news for suppliers such as Qualcomm QCOM and Broadcom QCOM, as demand for the new phones will keep the business going for them. Some near-term concerns for the company is that one of China’s biggest smartphone companies Huawei released their new batch of phones in late August hoping to compete with the US tech giant. Speed tests run by buyers and media suggest that the Huawei smartphones have a faster download speed than most 5G phones. Will this dethrone the iPhone in China? Only time will tell. 

Looking at the monthly chart, the 9 ema is currently in the 173 area, and the 9 ema crossing the 20 moving average is something our team likes to see to look for strength in the future. If 170 can hold for the rest of the month, maybe the bulls could get their end of the end-of-the-year rally they are looking for. If not, the 160 area could be a potential target for the downside to look out for. 

Let us know what you think about Apple and if you guys have other tech names that you like for the potential end-of-the-year rally. If you are on Twitter, now known as “X,” feel free to follow @ThrashCapital for more content!