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February 1 Chart of the Day - Apple for Earnings

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Apple (AAPL) is one of the most popular requests we get, especially on earnings day like today as the global tech giant reports after the closing bell.

Both Amazon (AMZN) and Facebook (META) also report after regular trading hours as well so there's likely to be significant price movement in the after hours markets...

If traders are looking for any clues look no further than earlier this week when AMD, Google, and Microsoft reported earnings and each are trading down since their respective announcements.

But is Apple different?  They usually seem to be able to pull the proverbial rabbit out of a hat with respect to earnings.  In fact, 6 of the last 8 quarters their stock price went up in the week after the announcement.

The market is implying about a $7 move in either direction by the end of this week as derived from the at the money straddle options cost.

We don't make predictions and find it difficult to bet against Apple so we just look at the chart from a price action technical analysis perspective.

On the weekly time frame we can see that price recently made a lower high but not yet a lower low so technically the long term up trend is still in play.

Down on the daily chart we can see that price is at a decision point of whether that next lower low is going to be set or will price turn back up to the upside.

We're thinking that today's earnings announcement could help price make that decision in a meaningful way.

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

Take a look at the charts and let us know what you think.  

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