Binary option on Apple Inc.(NASDAQ:AAPL) could be under pressure soon. The reason is that Google Inc.(NASDAQ:GOOG) is entering the tablet market with NEXUS7. Its price is about $199 which is far below current price levels. This fact could hurt AAPL`s market share. Binary traders are about to gauge the situation and give their opinion by bidding or dumping AAPL binary options.
The tablet segment exists for few years. However, it is already a $80 bln market and is about to double over the next year. As one of the fastest growing markets it attracts many competitors. Apple initiated the segment with its iPad. The profit margins are still increasing, but the need to increase sales will lead to a price war reducing all prices. The final consumer will be the winner.
After a tremendous upward move, the binary option on AAPL experiences a sideways period. Options have lost more than $100. One week ago, the company has reached $590. It represents a retracement of 70.70% from the previous downside move from $618 to $520. It seems to be a strong short-term resistance.
Potential targets are $572, followed by $563 and $556.
Disclaimer:
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.
