Apple (AAPL) reports earnings today after the close, and this is a big deal because it’s the first time new CEO John Ternus faces Wall Street after taking over from Tim Cook. Apple also accounts for a lot of the weight of the S&P 500, only second to Nvidia.
So it’s important to pay attention to Apple, especially around earnings, especially if you’re trading index futures or related securities.
Apple Stock: A Short-Term Forecast Ahead of Earnings
Looking at the daily chart of Apple, you can see that shares have been trading lower off the October 29th high at $351.43, which approached the October 23rd high at $351.73.
There’s a forecast per my Lost Forecasting Trading System methods for shares to trade lower to $332.20 by November 3rd. That’s tomorrow, which also happens to be the U.S. midterm election date.
Now, when we apply forecasting and earnings come into play, it’s important to look back at the earnings behavior of a particular security.
In the case of Apple, even if we just look back one quarter, you can see that following the July 30th earnings report, there was a substantial gap down in the price action.
So this is just a reminder to be extra cautious around the earnings release for a particular stock if its chart tends to gap around earnings.
The best way to do that is to look back a year or two and see how often it happens.
Key Support and Resistance Levels I’m Watching on AAPL
Coming back to the current action on Apple, it is my opinion that shares will trade lower first. However, there’s still room for them to regroup and resume the bigger-picture uptrend.
If they do so while staying above $325.81, the October 1st low, that would put shares of Apple on track to trade up to two projected resistance levels I’ve laid out.
The first is $362.83, and the next is $370.82.
These are based on my Gann projection methods. And if you’re a First 40 Trading Club member, you can find the analysis details and chart breakdown in our private Discord, in my new “Trading Insights” channel.
So again, short-term, I think that Apple is poised to trade a bit lower, with room to resume the uptrend after the effects of earnings shake out.
We’ll see what unfolds from there!
🚨 PS — First 40 Trading Club Doors Close TONIGHT! 🚨
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