Apple Stock: What The Charts Say Ahead Of Q4 Earnings

Key Takeaways
1. The overall trend direction of AAPL is bearish.
2. There's a higher chance the price of AAPL will continue to plummet.
3. For the trend to become bullish, the price of the stock has to break above the $174.89 resistance level.
4. Apple’s earnings day could be the catalyst that determines which way the stock will move next.”

As the price of AAPL continues to form lower highs and lower lows on the weekly time frame, it is clear for all to see that the price of AAPL is in a downtrend. Based on the weekly time frame analysis, experts believe the price of AAPL stock may continue to plummet in the near future. This is because the price of the stock is currently trading under a strong resistance zone in the $174.89 price region.

Daily Time-Frame
While the daily time frame may be bearish at the moment, analysts believe the price of the stock can flip in a blink. In their quest to push the price of the stock higher, buyers were able to drive the price of AAPL above the $180.11 resistance level.
This bullish pressure was exhausted when the price of the stock topped out at $182.32 before slumping below the reference resistance level at $174.89. This change in bullish price direction due to strong bearish momentum has left many buyers sitting on their hands and waiting for further buy signals before pulling the trigger.

So what is it going to be? Will the price of AAPL be breaking above the $174.89 resistance level to create a buy signal for the bulls, or will the stock price slump as the market bears drive the price lower?

Bullish Bias
A strong bullish bias will be established again if the price of the stock is able to break and close above the preceding daily high at $176.19 price level. This would result in the change of the current bearish structure to a bullish structure.
For swing and day traders who are looking to have spot-on entries in order to maximize profit, a good price region to buy will be at the break and retest of $174.89 support level.

Bearish Bias
Analysts believe there is a higher chance of the AAPL stock price plummeting than rising. This is due to no other reason than the fact that the price structure and the direction of the trend support this bias.
For the bearish bias on AAPL to play out, the price of the stock will only need to pull back a bit further to make a proper retest of the $174.89 resistance zone. If the price of AAPL successfully rejects and bounces off this level, there’s a high chance it may plummet as low as $164.73 before the end of Q4.