TRADE SETUP

Where do we stand fundamentally?

Apple unveiled iOS 26, featuring a "Liquid Glass" design, a significant redesign of its iPhone operating system, the first major overhaul since iOS 7 in 2013. The new interface includes a translucent aesthetic and customizable lock and home screens, but it faced criticism for readability issues, with some notifications obstructing content. Apple also introduced enhancements to Apple Intelligence, including live translation features for Phone, Messages, and FaceTime, and opened its Foundation Models to third-party developers. However, the AI announcements were seen as incremental, with no major Siri upgrade, which disappointed investors expecting a bolder AI push. A new Siri version is now targeted for spring 2026.

Apple's stock has faced challenges in 2025, dropping nearly 20% year-to-date, making it the worst-performing major tech stock among Meta, Microsoft, Amazon, and Google. On June 9, AAPL shares fell 1.7% after the WWDC keynote, reflecting investor disappointment over the lack of groundbreaking AI advancements. By June 18, the stock was down over 21%, with its market cap dipping below $3 trillion. Despite this, Apple reported strong Q2 FY25 results (March quarter), with a 5.1% year-over-year revenue increase to $95.4 billion and earnings per share of $1.65, beating estimates.

The AAPL is being rejected by the upside resistance at 210 again and is turning lower, potentially revisiting the 176 level.

For the rally to continue, we need a sustained breakout above 210; however, this could represent a potential head-and-shoulders pattern neckline retest. I am inclined towards a short-term short trade entry, as the overall market sentiment remains fragile due to geopolitical risks and the potential for inflation to rise again with the increase in oil prices. A break below 190 could open a test of the next support 153, in the medium-term.

_{I am taking a near-term short-trade entry with an SL above 210 to target 179. You can buy put options as well. If the trade is stopped, reverse it to a long trade entry.}