What Levels are Important for Apple AAPL ahead of Earnings?

Oct 27, 2015: 10:16 AM CST

Apple (AAPL) reports earnings after market close Tuesday, so let’s take a look at the current key price levels, 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 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.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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  1. Apple to Report Earnings After Market Close on Tuesday Says:

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