How to trade Apple stock before and after third-quarter earnings

Apple company AAPL Third-quarter financial results are due to be printed after the market closes on Thursday. The stock is trading flat as the event date approaches.

When the tech giant printed its second-quarter results on April 28, the stock plunged 3.66% the next day, resuming a downtrend that eventually brought Apple to a 52-week low on June 16 at $129.04.

Apple had a strong second quarter, reporting $1.52 on revenue of $97.3 billion. The company beat EPS estimates of $1.43 on revenue of $93.89 billion.

In the third quarter, analysts expect Apple to print $1.16 earnings per share on revenue of $82.6 billion.

From a technical analysis perspective, it appears that Apple stock is poised to trade higher over the coming days, but it is worth noting that holding stocks or options during earnings printing is like gambling because stocks can react upward to losing earnings and declining earnings. get over.

Options traders, especially those with put calls or puts, incur additional risk because institutions writing options increase premiums to account for implied volatility.

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Apple chart: Apple reversed course to an uptrend on June 16 and has been making a consistent series of higher highs and higher lows during the stock’s 21% rise from the $129.04 level. The latest higher low was recorded inside the pattern on Tuesday at $150.80, and the most recent confirmed higher high was formed at the $156.28 mark on July 22nd.

  • On Thursday, Apple was trading in an inside bar pattern and tried to break higher from the main bar on Wednesday. If Apple enjoys a bullish reaction to its earnings, bullish traders would like to see the stock open Friday’s session above the 200-day simple moving average, which could signal a new bullish cycle on the horizon.
  • If Apple suffers a bearish reaction to its print earnings and drops below Tuesday’s low, the stock will print a lower bottom and cancel the upside. If that happens, Apple will also lose support at the eight-day exponential moving average, which has been driving Apple higher since July 1.
  • Apple has higher resistance at $157.26 and $162.14 and support below at $153.92 and $150.

SEE ALSO: Why Apple and Amazon Could See Big Rise After Earnings

Image via Shutterstock.

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