APPLE DOWN ON REPORTS OF IPHONE PRODUCTION CUTS
Apple is currently trading at 190.37-lower by 1.63% as compared to the previous closing. In the Premarket trading session on Monday, the stock was trading lower by 2%. The stock has erased some of its earlier losses after the opening bell. Apple fell on Monday after a report said that the company has cut down on iPhone production orders.
The Wall Street Journal reported today that the tech giant has slashed orders for the iPhone XR, XS, and XS Max models. The three models were unveiled recently in September.
The company told its suppliers that it planned to slash production of the XR by a third of the approximately 70 million units, it had asked them to build between September and February, the Journal reported. The newspaper further added that in the past week, the company told suppliers it plans to trim production of the XR again.
Last week, the stock dipped into correction territory, down 20% from an all-time high that brought its market capitalization to more than $1 trillion. Lumentum, a supplier of laser technology used in Apple’s FaceID, cut its outlook citing a reduced shipment from a major customer.
On the technical front, the RSI is currently at 35.62% and suggests that the market can move in the downward direction. The current price is below the MA5 and MA200. The current price is below the middle line of the Bollinger Bands and is heading downwards.
Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION-STOP SELL AT 189.00 TAKE PROFIT AT 186.00 STOP LOSS AT 190.50