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Apple stock (ticker AAPL) is set to release its Q2 earnings report on Thu Aug 1. Since AAPL provides for 7% of the movement in the S&P vs the other 500 components, it’s important to monitor.
Overall, shares are correcting lower from the 237.23 peak posted on Mon Jul 15. The RSI Power Zones on the daily chart have returned to the Bull Support Power Zone. However the advance up to 237.23 seemed to have completed a 3 Drive move higher from 164.08 (Apr 19 low).
OUTLOOK
Therefore, I suspect AAPL shares are likely to weaken further.
–> The initial downside target is 212.70.
–> Losses there would risk 206.59.
–> And a breakdown below that level would risk 200.66 / 199.62, a combo of a major 50% retracement as well as the Dec 14 Old Top.
Alternate Scenario: On the other hand if shares trade higher from current levels, without first declining towards 212.70, a move above 227.78 would be needed to put the focus back on the 237.23 all-time high.
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