Apple () reports earnings after market close Tuesday, so let’s take a look at the current key price levels.
Let’s note the trend, and update potential targets that could come into play this week or beyond.
We’ll start with the Weekly Chart structure:
Apple (NASDAQ:AAPL) shares enjoyed a strong and persistent uptrend since the mid-2013 reversal low (near $55.00).
From there, volume and momentum strengthened as the trend stretched price above $130.00 per share.
However, negative divergences undercut the uptrend and price reversed, collapsing toward $90.00.
From there, price stabilized into a trading range (see Daily Chart) which gives us our current trading plan.
For reference, the 20 week EMA (green) aligns with $116.50 while the 50 week EMA trades at $114.72.
If price remains above the 20 week EMA, it would be a bullish sign that could open a price pathway higher toward $130.00 per share again.
Otherwise, a breakdown instantly under the 50 week EMA level near $115.00 suggests a fall toward the lower rising trendline near $110.00 per share.
Right now, we’re awaiting to trade a breakout from these levels – and earnings could be that catalyst.
Here’s the Daily Chart trading range and key levels on which to focus:
For quick reference, the “Upper Resistance” price is near $132.50 per share; the “Lower Support” price is roughly $105.00 per share; and the “Midpoint Magnet Value” area is just under $120.00 per share.
As the weekly chart suggests, a strong bullish breakout pathway develops above $120.00 and $121.00.
If above $121.00, odds could strongly shift to favor a bullish rally toward $132.50.
However, we do note resistance and a fall (yesterday) from the $119.00 level, making us neutral here.
The 20 and 50 day EMAs align near $114.00 per share.
In sum, a breakdown (post-earnings) under $114.00 suggests a bearish play back to $105.00.
However, a bullish breakout catalyst could set the stage for an eventual rally toward the $132.50 level.
For now, remain neutral and alert for a potential future breakout from these range neutrality levels.