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29th Oct 2021. 10.04am

Regency View:

Apple (AAPL) earnings and key levels

Apple to open lower as supply shortages bite

Apple’s share price fell 5% in after hours trading following the release of their quarterly earnings…

The world’s largest company said that chip shortages and Covid-19 related manufacturing disruptions had cost them $6bn in the three months to September. And the supply issues were likely to get even worse during the lucrative holiday period.

CEO Tim Cook said:

“We’re doing everything we can do to get more (chips) and also everything we can do operationally to make sure we’re moving just as fast as possible”.

Apple missed market expectations on revenue, reporting $83.4bn in its fiscal Q4, up 29% from a year ago but below analyst estimates of $84.3bn.

However, Apple did beat on net income – reporting a 62% jump to $20.5bn, versus estimates of $20.2bn, thanks to higher-margin services growth.

Technicals

Current pre-market data suggests Apple will open more than 3.5% lower at around the $147 mark – just below the first support level (S1).

From a short-term trading perspective today’s closing price is crucial…

Should the shares fight-back to close the opening gap this would setup a long trade with a stop below S1.

However, should the market hold the gap, the gap will then become resistance moving forward and a potential counter-trend short setup may be in play.

You can trade Apple (AAPL) right now in the “All Sessions” market if you have an IG account.

AAPL Daily Candle Chart

AAPL Daily Candle Chart

Disclaimer:

This research is prepared for general information only and should not be construed as any form of investment advice.