Apple shares close sharply lower, we think this is temporary
Shares of leading technology company and the biggest company in the world by market capitalization have shed 4% in Wednesday trading on Wall Street. We believe that this move is only temporary in its nature as major competitor Samsung revealed competitive devices today which were accepted positively by market players.
In our view the move is only temporary, so we would be buying daily and weekly call options on the shares of Apple, as it has a major announcement scheduled for the 9th of September, when it will allegedly reveal the next models of its iPhone flagship. The iPhone 6 will come in two sizes - 4.7 and 5.5 inches.
Many analysts are expecting the company to unveil a new device, which is supposedly called the iWatch. There is no telling when new products might hit the store shelves, but according to rumors around the industry the 4.7 inch iPhone 6 should be available 10 days after the launch.
The iWatch could take much more time as production of this new series of devices can be strained by manufacturing challenges. Analysts at Pac Crest have recommended to their customers to start taking profits into the announcement of the new product lines in September and October, when a new iPad device is expected.
We would be buying daily and weekly call binary options tomorrow, on the 4th of September to bet on a rise into the announcement next week. That said, trading next week can be really hectic, so we advise our readers to stay away from the market after Monday.
Looking at the charts, the stock has dropped from an all time high around $103.50 set yesterday, prices at the close of trading in New York hovered around $99. We would be buying tomorrow at the open if prices are below $99.50, should we see a break below $97, caution is advised and we would stay away.