Apple Inc. is working on a self-driving car and could be getting close to a test drive according to various media reports. Apple engineers are reportedly working on the secret project communicated with officials at a secretive testing site located on a formal naval base near the San Francisco Bay Area according to documents obtained from a Freedom of Information Act request. It was also reported that Apple has hundreds of employees working on development of an electric car which have been seen as a huge positive by traders and investors on the street. It is imperative to state that Silicon Valley has taken a big interest in autonomous driving of late so Apple could be seen competing with companies like Google and Tesla Motors.
Analysts would be closely watching the September Apple event where a new Apple iPhone is rumoured to be launched. The shares of Apple have been trading in a very narrow trading range post announcing its quarterly results which were seen as below most street expectations. It is important to point towards the fact that Apple continues to remain the most valuable company in terms of market capitalization around the globe. Many believe that the new rumoured iPhone 6s could be the make or break product for the company in the near term.
Shares of Apple have been in a strong downtrend after it was unable to break above the resistance level of $133 earlier last month. The stock has broken below all important daily moving averages which is being seen as a huge negative. The relative strength index has given a sell signal which is indicative of the shift of momentum towards the sell side. Traders believe that the stock might find resistance at levels of $120 on the upside and support at $109 on the downside.