Chart Analysis: All eyes are on Apple ($AAPL) today with earnings reports due after market close and a 30% drop in the stock since September. Today’s earnings report will provide traders with some insight into the iPhone business after several reports of cut orders for the iPhone this quarter. The release of the newest phone by Apple ($AAPL) seemed to fall short of the expectations of consumers and investors alike and since, Apple ($AAPL) has felt the impact of this disappointment. Many investors may look at today as a great opportunity to buy into some Apple ($AAPL) stock with optimism that earnings reports will help Apple ($AAPL) regain some of its market share from a few months ago.
Today’s NinjaTrader Chart of the Day displays daily HiLo bars as well as a weekly LineOnClose data series. It is plain to see that over the past few months Apple ($AAPL) has taken a serious hit however it is unclear if this stock is rearing up for reversal. The positive market action and volume displayed over the past few days seem to suggest some restored faith in this stock but are more likely a product of investors looking to ride a bullish move in Apple ($AAPL) after earnings reports surface. It has been months since Apple ($AAPL) has ventured above the 50 day Simple Moving Average (SMA) as plotted on this chart in solid grey. Today and tomorrow, traders may also look for a cross of the 21 day and 50 day SMA’s similar to what occurred in October as Apple ($AAPL) prices continued to push lower. Taking a look into volume after earnings reports are made public may also prove helpful in making decisions on where and how to enter this market in the coming days. Apple ($AAPL) will definitely be a market of interest in the next few days. Will earnings give Apple the boost it needs? Will these reports solidify previous market action? Create your own Apple ($AAPL) chart and apply your favorite technical and fundamental studies for free with NinjaTrader and end of day data from Kinetick!