Tonight, after the US closing bell, Apple Inc (NASDAQ: AAPL) will deliver its earnings for Q4 2019. From the technical side, we can see that the common stock has moved lower, after hitting its all-time high last week, near the 323.30 level. This move down led to a break of the short-term upside support line taken from the low of December 3rd. That said, we notice that AAPL got held near the 305.90 hurdle, which is also the low of January 9th. For now, we will remain cautiously bearish and wait for a drop below that hurdle before examining potential further short-term extensions to the downside. In addition to that, we will certainly keep an eye on the company’s earnings tonight.
Eventually, if the price falls below the 305.90 zone, this could open the door for a deeper move down, possibly targeting the 297.15 obstacle, or the 292.80 area, marked by the current lowest point of January. AAPL might stall there for a bit, but if there are still no new buyers in sight around that price, this may lead to further declines, which could bring the stock to the 285.20 level. That levels marks the low of December 30th.
Our oscillators, the RSI and the MACD, support the scenario discussed above. The RSI is below 50 and points a bit lower. The MACD, although still slightly above zero, has sharply moved to the downside and remains below the trigger line.
Alternatively, if AAPL rises back above the aforementioned upside line and pushes above the 317.50 barrier, marked by the low of January 24th, this could raise interest among new buyers. If so, the stock might drift to the current all-time high, at 323.30, a break of which would confirm a higher high and place the share price in the uncharted territory.
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