Apple Inc. (AAPL) has been up and up since the bottom that we called at the beginning of the year. It’s seen new higher highs and new higher lows.
With earnings around the corner (May 3, 2023), there are two big things I find concerning…
The first is that momentum is absolutely slowing down. The MACD has been making lower highs.
Last week, AAPL hit a higher high, while the MACD hit a lower high… and has now crossed to the bears. The MACD can be seen in the line chart below the AAPL candlestick chart here…
Apple only dropped about $1.63 on Friday, but is continuing its gentle slide this morning.
It appears this stock has officially hit the top of its channel. If the earnings weren’t in play, I’d suspect the stock was going to pull back and compress, build a base and unwind a little bit.
But if the company reports amazing earnings, the stock could head first to about $176… then up to around $180/$183 – and eventually breaking out.
And if it DOES break out, the move is going to be enormous… I’d say up to perhaps $200… perhaps even as high as $220.
If earnings are lackluster, and the stock ends up going sideways, I’d expect more compression and potentially even a pullback. If it did drop back to $155/$160, it would have a nice springboard for a move back up.
Overall, $170 is my make-or-break level for AAPL. Above $170, we’re breaking out… below, and we’re potentially headed for a sideways or downward move.
I’ll be back with a review next Monday.
Enjoy your week!
Micah
