Simple Trading Pre-Earnings Chart Review – AAPL – 21 July 2014

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AAPL is scheduled to report its quarterly earnings after the close tomorrow 22 July 2014.  I’ve talked about AAPL a few times in the past… you can see a couple of those posts here and here.

Of course, I have absolutely no idea how the company’s numbers will look, nor, more important, how they will be received by the market.  I do however have a couple of thoughts on price points that may be of interest leading to and following the announcement.

First, last week’s price action engulfed the previous week negatively and closed down for the week albeit after recouping some of the losses.  As a result, last week’s price extremes ($97.10 High & $92.57 Low) offer interesting initial price levels to watch.  A break through the high resumes the uptrend and how high is anyone’s guess.  A break through $92.57 is a bit more interesting if only because it brings the 10 Week EMA and then the recent Minor Swing Low at $89.65 (Support 1) directly into focus as potential areas of Support.

A break of both those support levels will turn attention to the 20 EMA around $87.00 and Support 2/the 40 EMA around $82.50.  Incidentally, the Support 2/40 EMA area also happens to fall squarely between the 50% and the 61.8% Fib Retracement Levels of the January 2014 Low to last week’s high move.  Given my affinity for price clusters, that is perhaps the most interesting area on the chart.

The January low obviously represents Major Support, but if price makes it to that level in the near term, there’s a good chance all hell has broken loose, so your concerns would likely be better placed elsewhere.

Good trading.

 

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