Apple: +5% in a few days

Our analysts considered buying shares of Apple Inc. (AAPL) after the stock dropped following the company’s annual fall event. Thus, the question regarding AAPL price was published on Monday, September 12:

Apple could see an uptick in the sales of its iPhone 7 as a result of competitor Samsung having to recall its new Galaxy Note 7 smartphones due to exploding batteries, Piper Jaffray managing director Gene Munster said on CNBC. Will it make Apple stock (AAPL) rise above $110 before September 26?

According to Cindicator users, the probability of such a move was 70% on Tuesday, September 13. In addition to that, both T-Mobile US and Sprint reported strong iPhone 7 pre-orders. T-Mobile (TMUS) said pre-orders have shattered all previous iPhone pre-order records at T-Mobile. Sprint (S) noted pre-orders were up more than 375% in the first three days over last year.

Despite the fact that the market was weak, APPL stock was up more than 2.5% in the morning trading on Tuesday, September 13. There was clearly intraday support at $107.70s, so we bought AAPL at $108.09 average between 12:50–1:10 PM. We sold the entire position for a small loss because the market continued declining and we thought we would re-buy Apple shares lower. We failed to buy it lower, however, we noticed that $107.70s intraday support was still strong and we re-bought AAPL at $108 average before the market close.

Next day Apple stock opened at $108.80 and jumped above $110 in first 10 minutes. We sold one-third of our position at $110. Another third we sold at $111.80 before the market close on Wednesday, September 14. The last third we sold at the market open at $114 on Thursday, September 15.

Happy trading,

Cindicator team

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