Apple Inc. (AAPL): Important Levels To Watch Ahead of Earnings?

apple buzzCorey Rosenbloom:  Apple Inc. (NASDAQ:AAPL) reports earnings after market close Tuesday, so let’s take a look at the current key price levels, note the trend, and update potential targets that could come into play this week or beyond.

We’ll start with the Weekly Chart structure:

Apple shares enjoyed a strong and persistent uptrend since the mid-2013 reversal low (near $55.00).

From there, volume and momentum strengthened as the trend stretched price above $130.00 per share.

However, negative divergences undercut the uptrend and price reversed, collapsing toward $90.00.

From there, price stabilized into a trading range (see Daily Chart) which gives us our current trading plan.

For reference, the 20 week EMA (green) aligns with $116.50 while the 50 week EMA trades at $114.72.

If price remains above the 20 week EMA, it would be a bullish sign that could open a price pathway higher toward $130.00 per share again.

Otherwise, a breakdown instantly under the 50 week EMA level near $115.00 suggests a fall toward the lower rising trendline near $110.00 per share.

Right now, we’re awaiting to trade a breakout from these levels – and earnings could be that catalyst.

Here’s the Daily Chart trading range and key levels on which to focus:

For quick reference, the “Upper Resistance” price is near $132.50 per share; the “Lower Support” price is roughly $105.00 per share; and the “Midpoint Magnet Value” area is just under $120.00 per share.

As the weekly chart suggests, a strong bullish breakout pathway develops above $120.00 and $121.00.

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