Amazon (AMZN) – Get an Amazon.com Inc. report. It might get all the attention with its shares up 11% in a post-earnings celebration, but Apple’s stock is also up after a better-than-expected quarter.
Investors were concerned about potential supply chain issues and recession fears hurting sales. Turns out it wasn’t a problem.
Apple provided the highest and lowest earnings, and while management did not provide guidance for the next quarter, the company said revenue should accelerate year-over-year.
That’s clearly good enough for investors, as Apple shares are rallying together for their fourth consecutive weekly rally and are suddenly up 25% from their June low.
With positive reaction across FAANG this earnings season – excluding Meta (dead) – Get the Meta Platforms Inc. report. Bulls have gained a key component of the bullish momentum. Now the question is, can it be preserved?
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Notice the way Apple’s stock has been rising over the past month. The shares easily liquidated the key $150-$152 area earlier this month, which was the high of the previous month and the low of the first quarter.
After pushing through this area, Apple stock entered the 50-week moving average, retraced to the aforementioned area from $150 to $152 and found support. This was a major development for the bulls, as it was easy for Apple to collapse and move lower.
Instead, it rallied ahead of earnings, and now we’re seeing more follow-up as stocks shake off the 200-day moving average, 61.8% retracement and the weekly VWAP metric.
all of this very Fantastic price action. Clearing all of these actions doesn’t mean Apple can’t back out, but the benefit of the doubt now lies in the bull case.
If the stock loses some of these measures – such as the 200-day and 50-week moving averages, the weekly VWAP metric and the short-term active support across the 10-week moving average – then the bears can take advantage of the momentum.
Until that happens, we have to assume that buyers are in control. If Apple can clear the $164 to $166 area, that opens the door for a 78.6% retracement near $169.
A move above that would technically put the $175-$178 resistance back into play. Given the current investment environment, it’s hard to imagine now. However, it is possible for the bulls to remain in control.
As for support, the bulls would like to see a flat $158-$160 area on a pullback.