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Fan Yang

AAPL Testing a Key Support/Resistance Pivot Area

Apple's (AAPL) most recent earnings report beat estimates of $1.88 and showed an adjusted earnings $1.96. The report coincided with a bullish rebound that followed a sharp dip to 92.00. Price is now above 120.00 as we can see in the daily chart.

AAPL Daily Chart 11/2
(click to enlarge)

It is possible that AAPL is back on its pre-2015 mode, which has been bullish since at least May 2013. However, we should also consider possible respect to the multi-month triple top formed in 2015. In fact, price is now testing the support area of that triple top, which has acted as resistance in August. 

I would say that in the short-term, let's anticipate some bearish attempt. The 119.30-122 area is a key resistance area that also involves the 200-day simple moving average as the 50-week SMA as well as we can see in the weekly chart. 

In the short-term, we can anticipate a push towards 112.00. A break below 112 should signal further bearish correction to 110, with risk of falling back towards the 92.00 low. If you are still bullish on AAPL in the medium to long-term, you might want to wait for a bearish correction in the short to medium-term for better price and timing. 

AAPL Weekly Chart 11/2

(click to enlarge)

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