Chart of the Day: Is Apple About to Turn Over?
The stock is up seven straight sessions but may face headwinds after earnings drop tonight.
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Apple AAPL is always a tough stock to read in front of earnings. Tonight investors and traders will look for some clarity over Apple's production issues, as recent reports say it's moving significantly to India. Further, is there some news on new phones later this year and are they AI-related and if so, what will the pricing be and will tariffs cause a significant rise in consumer cost? Lastly, will services continue to grow and provide strong margin performance for Apple?
These and many other questions need to be answered, but the market seems to be ignoring lately any problems Apple may be having. The stock is higher each day over the past seven sessions and right into a steep downtrending resistance line. Notice the candles are pink/purple, which reflects bearish on GoNoGo composite of indicators. Further, money flow is bearish and that means more funds have been out selling Apple rather than buying it. Is that telling us something? We'll know more later today.
The Moving Average Convergence Divergence, in the second pane, and the parabolic SAR (stop and reverse), in the first pane, are both on buy signals. The current price is at a crossroads here. Above that trendline and Apple can make a swift run to the February highs at $249. But a failure here sets up at test down to $186 at least or lower.
We like Apple in Pro Portfolio and rate it a "two," or stockpile on pullbacks.
The Pro Portfolio is long AAPL.
