Technical Analysis – Apple stock crosses below 200-SMA ahead of earnings

Apple’s stock has been trending downwards since mid-March when the 179.50 region rejected the share price’s further advance. In the last few sessions, the technical picture seems to be deteriorating further as the price crossed both below its 50- and 200-day simple moving averages (SMAs).

The momentum indicators suggest that bearish forces have gained total control. Specifically, the stochastic oscillator is sloping downwards in the oversold zone, while the MACD histogram is found beneath both zero and its red signal line. Additionally, the price has dived beneath the Ichimoku cloud, endorsing a broader bearish outlook.

Should selling interest intensify further, the February low of 153.50 could act as the first line of defence. Piercing through this region, the price could dive towards the 2022 low of 150.00 before the spotlight turns to the 147.50 barrier. Failing to stop there, the price could then challenge the 141.20 hurdle.

Alternatively, if negative momentum wanes and the price storms higher, the price could encounter immediate resistance at the 200-day SMA, currently at 159.00. Breaching this level, the bulls could aim for the 163.00 barricade. Above this line, the price might ascend towards 171.50 or higher to test the 179.50 obstacle.

In brief, the stock’s overall outlook remains bearish as its recent downside impetus continues to mark yet more lower lows. For that bearish tone to alter, the price needs to clearly jump above the 171.50 ceiling.

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