AAPL Shares Decline After Apple Intelligence Presentation

On 10 June, during the WWDC2024 conference, Apple unveiled its new artificial intelligence system, Apple Intelligence (AI).

Apple Intelligence allows users to enhance their text and communicate more efficiently: rewriting, proofreading, and summarising text across multiple applications, including mail, notes, pages, and third-party programs. The Rewrite feature lets users adjust the tone of messages, add humour, and rephrase sentences.

Key features include:

→ AI’s capability to grasp the user’s “personal context.”

→ AI’s functionality to create unique photos, sketches, and illustrations in Notes, Freeform, and Pages.

→ Apple announced its collaboration with OpenAI during the event.

Despite the announcement, AAPL shares fell nearly 2% the same day, with trading volumes on the Nasdaq reaching over 97 million shares, significantly higher than the average of about 59 million.

Did investors find the presentation underwhelming? Today’s stock chart suggests the decline might be related to the critical $195 level per AAPL share.

Technical analysis of AAPL’s chart indicates:

→ The price has tried to maintain above $195 three times (end of July 2023, December 2023, end of January 2024) but failed each time. The proximity to the significant psychological level of $200 per share appears to be a factor.

→ The RSI indicator is close to the overbought zone, encouraging a price correction and profit-taking near key resistance (after a rally from A to B of nearly 20% in under two months)—possibly driving yesterday’s drop.

→ Yesterday’s candle formed a bearish engulfing pattern.

If the correction persists, AAPL’s price might fall within the ascending channel (shown in blue) to its lower boundary. Key support could be around $180.40:

→ Roughly at the 50% Fibonacci retracement level from the bullish impulse A to B.

→ The upper boundary of the bullish gap from early May.


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