Here's How Far Apple Stock Could Rally on Earnings

Here's How Far Apple Stock Could Rally on Earnings ...

Apple (AAPL) - Get Apple Inc. Reportis turning heads and giving bulls something to cheer for on Friday. While stocks are up only 3.3% so far on the day, it's a nod that the bulls needed.

Get Amazon.com Inc. ReportMay be getting all the attention with its shares up 11% in a post-earnings celebration, but Apple stock is also higher following a better-than-expected quarter.

Investors were concerned about possible supply chain issues and recession worries affecting sales. Turns out, it wasnt a problem.

Apple delivered a top- and bottom-line performance, and while management did not provide guidance for the next quarter, the business said revenue should increase on a year-over-year basis.

Apple's fourth weekly weekly gain in a row is now up 25% from its June low, proving that the company is capable of achieving its financial objective.

Get Meta Platforms Inc. Report bulls gained a key component for upside momentum. Now the question is, can it be maintained?

After earnings, you can trade Apple stock.

Apple stock chart for the day.

TrendSpider.com has provided a chart.

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Notice the way Apple's stock has been falling for the last month. Shares easily cleared the key $150 to $152 area earlier this month, which was the previous months' high and the first-quarter low.

Apple stock retreated to the $150 to $152 level and found support after pushing through this resistance zone. This was a significant move for the bulls, since it would have been difficult for Apple to break down and lower.

Instead, it pushed higher ahead of earnings and was seeing more follow-through as shares cleared the 200-day moving average, 61.8 percent retracement, and the weekly VWAP measure.

All of this is a very impressive price increase. Clearing all of these limitations does not mean Apple will not be able to pull off another decline, but the benefit of doubt lies now in the bull case.

Bears can use the momentum if the stock loses some of these measures, such as the 200-day and 50-week moving averages, the weekly VWAP measure, and short-term active support via the 10-week moving average.

We have to assume that the purchasers are in charge until it is resolved. If Apple can clear the $164 to $166 area, it opens the door to a 78% retracement near $169.

A move above that will put the $175 to $178 resistance back in play, given the current investment environment. However, it is possible if bulls remain in control.

Bulls would like to see the $158 to $160 area hold on to a pullback.

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