Earnings Play: Apple

How to play Apple's earnings

Charts (6)

On Thursday, after market, Apple (AAPL) is expected to report second quarter EPS of $2.26 compared to $2.46 a year ago on revenue of appx. $54.2B vs. $58.0B last year. On April 27th, The Wall Street Journal reported that the company delayed the mass production of its 2020 iPhones.

Looking at a daily chart, Apple's stock price has regained more than half of what it lost from its peak in February. Price has been in a short-term up trend since late-March after the S&P 500 reached its 2020 low on March 23rd. Recently, Apple's stock price broke above its 50 day moving average before crossing back below it, finding support at its 20 day moving average, above a rising trend line. Price has since continued upwards and appears to be on the way to break above its April 14th high of $288.25. The 20 day moving average is very close to crossing above its 50 day moving average, giving a bullish signal. If price can hold above the rising trend line and breakout of its most recent high, we will likely see price accelerate to retest $304.00, where price gapped down. If price can break above $304.00 we may see a retest of Apple's all time highs.

Source: GAIN Capital, TradingView


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