Technical Analysis – Apple stock pauses rally ahead of earnings
August 2, 2023 10:28 am
Apple’s stock has been in a steep uptrend since the beginning of the year, posting consecutive multi-year peaks. However, in the past two weeks, the price appears to be consolidating near its recent record high of 198.08 ahead of the Q2 earnings call on Thursday.
The momentum indicators currently suggest that near-term risks are tilted to the upside. Specifically, the stochastic oscillator is ascending near its 80-overbought zone, while the RSI is flatlining above its 50-neutral mark.
Should earnings surprise to the upside and the price storm towards fresh record peaks, strong resistance could be met at 205.13, which is the 138.2% Fibonacci extension of the 182.71-124.02 downtrend. Further advances could then cease at the 150.0% Fibo of 212.06. A violation of that zone could set the stage for the 161.8% Fibo of 218.98.
Alternatively, if the uptrend comes to a halt and the price corrects lower, the 2022 peak of 182.71 could now serve as support. Should that barricade fail, the bulls may attack the 78.6% Fibo of 170.15. Sliding beneath that floor, the stock could then face the 61.8% Fibo of 160.29, which lies very close to the 200-day simple moving average (SMA).
In brief, Apple’s stock has been in a relentless rally since the beginning of the year, which seems to be on hold ahead of the Q2 earnings announcement. Will the upcoming earnings trigger a significant move?
Apple’s stock has been in a steep uptrend since the beginning of the year, posting consecutive multi-year peaks. However, in the past two weeks, the price appears to be consolidating near its recent record high of 198.08 ahead of the Q2 earnings call on Thursday.
The momentum indicators currently suggest that near-term risks are tilted to the upside. Specifically, the stochastic oscillator is ascending near its 80-overbought zone, while the RSI is flatlining above its 50-neutral mark.
Should earnings surprise to the upside and the price storm towards fresh record peaks, strong resistance could be met at 205.13, which is the 138.2% Fibonacci extension of the 182.71-124.02 downtrend. Further advances could then cease at the 150.0% Fibo of 212.06. A violation of that zone could set the stage for the 161.8% Fibo of 218.98.
Alternatively, if the uptrend comes to a halt and the price corrects lower, the 2022 peak of 182.71 could now serve as support. Should that barricade fail, the bulls may attack the 78.6% Fibo of 170.15. Sliding beneath that floor, the stock could then face the 61.8% Fibo of 160.29, which lies very close to the 200-day simple moving average (SMA).
In brief, Apple’s stock has been in a relentless rally since the beginning of the year, which seems to be on hold ahead of the Q2 earnings announcement. Will the upcoming earnings trigger a significant move?
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