Apple Inc. $AAPL is closing in on a $1 Trillion valuation. Its latest earnings report is due after 7/31 session closes. Will we see a positive reaction and therefore a historical achievement? Price action is reasonably stalling ahead of the announcement after a strong rally in May. As we can see on the daily chart, price action since June has been more or less sideways. I don't have any unique opinion on whether earnings will beat estimates, but looking at the chart, I would like to be prepared for a dip. AAPL Daily Chart (click to enlarge) Stalling:- Price action is stalling under $196 per share.- We can see a bearish divergence between the price high and the RSI high. - Also, the RSI failed to push to 70 in July, which suggests lack of strong bullish momentum, although the general momentum is still bullish. - Still, price action of the bearish engulfing candle last week gives us a reason to anticipate a possible dip. - If price closes below $189, a bearish scenario will likely materialize.- I think if price pulls down, we should anticipate a dip towards the $175-$177 area, which would involve the 200-day simple moving average. This is also in the upper bound of a previous consolidation period. - I think at this point, there is too much downside risk in AAPL to chase a run after the earnings report. - Also note that any bearish outlook at this point is for the short-term, as AAPL continues to be cash abundant and can pivot if any of its revenue streams contract.Here are some other opinions to consider:Apple earnings: Watch these 4 numbers Apple’s shaping up for a massive earnings beat, strategist predicts