Apple Stock Update: Bearish Price Action Into Earnings

Apple’s (NASDAQ:AAPL) drop to new weekly lows confirms last Friday’s break of the current one-month bounce in Apple’s stock price. This may be important as it most likely puts further near-term pressure on the stock. That said, Apple AAPL earnings will be the wild card.

While Apple earnings are notoriously tricky, the technical picture remains negative for AAPL stock. I personally fell that Alphabet (NASDAQ:GOOGL) is the better of the two to own right now.

Apple Stock Chart (AAPL) – Technical Update

Currently Bearish.  I believe that it is still too early to own for any duration. As noted, AAPL earnings will be tricky, and we should know more after the noise settles down.

AAPL stock remains a near-term laggard.  The stock has trended lower as part of an intermediate-term downtrend that began last May. While Apple’s stock price has been largely range-bound since early this year, it still hasn’t shown technical signals of bottoming out and remains in a trend of lower highs. Meaningful support lies from 89.50-92.00 which has held since January.

It’s notable that its own price range has been narrowing in the last year. This should eventually lead to a bigger directional move.  For now, it’s tough to say with any real certainty that this move needs to be on the upside given ongoing lower highs (technically speaking).

Key price areas to watch into and out of Apple earnings are 105 on the upside, then $113.  And 90 on the downside, followed by 85-86.

Apple Stock (NASDAQ:AAPL) Longer Term Trend – The long-term uptrend intact. However, there are insufficient signs of bottoming here. Currently, I cannot rule out a move to 85-86, or even the mid-70s. These would be better areas to attempt to buy for value.

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The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.