Stock of the day: Apple

The earnings season in the U.S. is in full swing, and market enthusiasts are eagerly waiting for Apple’s announcement on the 3rd of August. The tech giant is expected to post an EPS of 1.19 with a revenue forecast of 81.7B. Investors are keen to see how these results would influence the stock’s trajectory.

Starting the year on a strong note, Apple has been on an uptrend, and this positive momentum can be traced back with the red line acting as a dynamic support. However, the recent price action raises some eyebrows. Despite a strong opening yesterday, the stock witnessed a reversal by the end of the session, a behavior which can often unnerve investors.

The technical picture reveals some concerns. A pattern resembling the classic ‘head and shoulders’ has emerged on the chart, marked in blue. This formation, known to be a bearish indicator, hints at the possibility of a downtrend in the coming days or weeks. For traders, the key level to watch would be the red uptrend line. A break below this could signal a potential selling opportunity, shifting the sentiment to the downside.

Should this bearish outlook materialize, the first major support to watch out for would be the green area on the chart. This region represents previous resistance turned support from August and March 2022. In essence, a breach of the red line could usher in a correction phase for Apple, targeting the green zone.

Given the present conditions, the scales seem to be tipping towards a bearish scenario for Apple, at least from a technical standpoint. Investors and traders should tread with caution and keep an eye on the aforementioned levels, especially in the light of the upcoming earnings report.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-apple-4