Earnings Play: Apple

Caution.

Apple

On Thursday, after market, Apple (AAPL) is anticipated to report fourth quarter EPS of $0.70 compared to $0.76 a year ago on revenue of approximately $63.5 billion vs. $64.0 billion last year. The company develops consumer electronics and its current analyst consensus rating is 27 buys, 13 holds and 4 sells, according to Bloomberg.

Looking at a daily chart, Apple's stock price recent broke out to the downside of a short-term bullish trendline that price was rising above since mid-September. At the same time Apple's price was holding under an intermediate-term bullish trendline that began to form back in mid-March. The RSI is currently around 43 and confirming price action with a lower high made in mid-October compared to the last peak in early-September. Apple's stock price will probably continue to fade until it reaches its key support level at 103.00. Price will likely rebound off of 103.00 and retest the last peak of 125.40. If price can get above 125.40 then the next target is the record high of about 138.00. If price can get above 138.00, then the first Fibonacci target is 161.00. On the other hand, if Apple breaks out and closes below its 103.00 support it would be a bearish signal that could send price down to 93.00 and possibly lower.     

Are we witnessing the beginning of the end for Apple or is this a great time to dip buy?



Source: GAIN Capital, TradingView


More from Earnings

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.