Apple company AAPL Its financial results for the second quarter are due to be printed after the market closes on Thursday. The stock traded more than 4% higher as the event date approaches
When the tech giant printed its first-quarter results in January, the stock fell more than 6.14% over the ensuing four trading days, to $175.88. Since then, Apple has slipped between about $150 and $180 amid increased market volatility.
to me First Quarter, Apple reported adjusted earnings per share of $1.68 on revenue of $28.76 billion, beating the consensus forecast of $1.24 per share on revenue of $22.24 billion. About the second quarter Analysts Appreciation Apple will report earnings per share of $1.43.
From a technical analysis perspective, Apple’s stock appears set for a major reversal to the upside, but it’s worth noting that holding stocks or options during earnings printing is like gambling because stocks can react upward to losing earnings and declining earnings. .
Options traders in particular, those with pending calls or puts, incur additional risk because intuition when writing options increases premiums to account for implied volatility. The implicit The move for Apple options that expire this week is 5.56%.
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Apple chart: On Thursday, Apple broke up from a bearish channel pattern on the daily chart, which has been keeping the stock bearish since April 4th. The breakout from the upper descending trendline of the channel was in above average trading volume, which indicates the pattern has been recognized.
- Apple is still trading in a downtrend in this time frame, making a series of lower highs and lower lows. The latest high was recorded on April 21st at $171.53 and another low was made at $155.38 on Wednesday. In order to confirm a trend change to an uptrend, Apple will eventually need to print a lower high above another lower low.
- On Thursday, Apple tested the 200-day simple moving average (SMA) as a support and rebounded from the area. The 200-day simple moving average is a leading indicator used by traders and investors to determine whether a security is in a bullish or bearish market. On Tuesday and Wednesday, when the stock closed trading sessions below the 200-day simple moving average, a bear trap was set up.
- If Apple closes the trading session near the highs of the day, the stock will print a bullish Marubozu candle, which could point to higher prices on the way on Friday. If the stock closes the session with a long upper wick, this could indicate the printing of the next lower high and Apple will trade lower on Friday.
- Apple has higher resistance at $167.88 and $171.03 and support below at $162.14 and $157.26.