Partner Center Find a Broker

AAPL shares have been riding the risk-on wave so far this week, but will the rallies last?

Or will downbeat earnings expectations force the downtrend to resume?

The company is scheduled to print its Q1 fiscal results on February 2, and here are the levels I’m watching.

Apple Inc (AAPL): 1-hour

Apple Inc (AAPL) 1-hour Chart

Apple Inc (AAPL) 1-hour Chart by TradingView

Check out Apple’s stock price closing in on the descending trend line that’s been holding since November last year!

Technical indicators are giving mixed signals on whether the trend could resume or reverse.

Stochastic has already reached the overbought region and is starting to turn lower to signal a pickup in selling pressure.

But while the 100 SMA is below the 200 SMA for now, the gap between the indicators has narrowed enough to hint at a potential bullish crossover.

If this happens and manages to attract more buyers, AAPL might have a shot at breaking above the trend line resistance around $140 and carrying on with its climb.

Of course it could all boil down to the outcome of the company’s earnings report due next week, and analysts expectations might impact price action ahead of the release.

UBS lowered their estimates for Apple earnings, citing that supply chain disruptions and COVID-19 lockdowns in Zhengzhou negatively impacted the company’s assembly facilities in the region.

If you had ordered the iPhone 14 Pro or 14 Pro Max during the December quarter, you’d probably had to deal with longer wait times for the devices then. These likely resulted to revenue misses for the period, possibly causing Apple’s EPS to come in below consensus.

Just take note, though, that the company has been able to beat estimates for the past couple of quarters so they could be poised to report another set of upside surprises.

What do you guys think? Are you bullish or bearish on APPL this time?

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.