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Apple Strategy for the week 03-07 Mar 2014

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Apple Chart 03 Mar 2014
4.7/5 of 3 ratings

Apple has been one of the few relatively stable stocks today

The big tech giant is holding steady as the broad market declines. The company has announced today that it is going to offer an infotainment solution alongside many automakers designed to connect your iOS device to your car. The market accepted the news with hands wide open.

As the week starts with substantial turmoil and crazy volatility across the binary options markets, there is one company that has barely budged when compared to the broad market today - that's the biggest company in the world by market value - Apple Inc.

For the past few months there have been rumors circulating that the company might announce something connected to cars, and the rumors are now facts - the company will roll-out an car infotainment operating system that allows your iOS device to be connected to your car.

CarPlay will allow you to use Siri voice commands to control everything on your phone. The only condition - it starts to work with devices above the iPhone 5. Customers will be able to access Maps, Music and the Messages apps. Third party apps like Spotify and Beats Radio will be supported as well.

The most exciting news around the announcement is that the company has gotten on-board a vast amount of car manufacturers - only in 2014 we have already Honda, Ferrari, Jaguar, Mercedes-Benz, Hyundai, and Volvo. Future support will come from Toyota, General Motors, BMW/Mini, Kia, Ford, Mitsubishi, Nissan, Land Rover and Subaru.

Looking at the chart we see the first trading opportunity to buy call options on the approach to the lower lying trend line around $519,50 - $520. This will be our first call for now - if we see this level tomorrow - we will buy daily calls.

Stay tuned to the updates section below, as the trading week progresses charts will be updated.

Comments

Matt T.'s picture

Apple's shares have briefly broken to the upside, however as the day progressed, prices drifted lower, punishing investors that maintained their bullish sentiment to close below our key level at $532,33. At this point in time we would refrain from trading until we see how the market opens tomorrow - this failure to close above the key resistance at to the upside might prove to be an opportunity to drive prices much lower from current levels. Stay tuned for our updated chart tomorrow, while for those of you who are more aggressive, we recommend to turn bearish.Apple Chart 06 Mar 2014

Matt T.
Matt T.'s picture

As we are drawing closer to the end of trading in New York today, Apple's shares are trading 0.5% higher and closer to the upside of the daily range. With so much factors driving market sentiment recently, this stock has displayed a rather solid behavior considering the circumstances. We are identifying another good level to buy calls - since prices have been capped twice to the upside around 532.70, we would buy an hourly break above that level for a next day call option. Stay tuned throughout the week to our strategy session here as trading progresses.Apple Chart 04 Mar 2014

Matt T.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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