How to Play The Upcoming Apple Announcement

Apple is holding its first event of the year today, with no shortage of attention from tech enthusiasts and equity traders. While the company isn’t expected to announce any details on its upcoming flagship iPhone 7, it is anticipated Apple will launch a range of new products including a 4” iPhone SE, a 9.7” iPad, an assortment of Apple Watch bands, and various software updates.

The iPhone SE is expected to be based upon an iPhone 5s, while also being the company’s first attempt at a 4” phone since 2013. While there is some conjecture over what the design may look like, it isn’t likely to depart widely from either the 5s or 6s, with the former touted as the likely option and the processor thought to match the 6s. Similarly, the 9.7” iPad is anticipated to encompass numerous features from the iPad Pro, albeit with a smaller design and minor hardware adjustments. The most awaited software update is likely to be iOS 9.3, with updated features across several apps.

With the above announcements likely to be viewed as minor to moderate advancements on current models, it remains to be seen whether consumer demand will remain strong. Additionally, appetite amongst traders and investors will be tested, unless there is anything notable to cheer about through any unexpected announcements such as upgrades to the company’s notebooks.

Across the last year, Apple’s stock has been in a downward trend having peaked in the $130’s. Based on the stock’s charts, Apple has found a price support of $93, having tested this mark on several occasions in the last six months. Since its most recent decrease to this level in February, the stock has rallied off its lows up towards $106.

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The key to the stock’s outlook will be with the release of the iPhone 7 later this fall. If looking for an opportunity to open a positon, one should look for weakness following any impending announcements to buy this stock at lower price levels, so that they can take advantage of the iPhone 7 play later in the year when consumer demand and investor sentiment is likely to surge.

Ser Man Traders do not hold any current positions in Apple stock (AAPL)