Despite surpassing expectations with its Q3 earnings on August 3rd, Apple Inc (NASDAQ: AAPL) has experienced an unexpected decline for two consecutive days post earnings.
Apple's Q3 earnings proved better than expected, with actual earnings of 1.26 compared to the projected earnings of 1.19.
Despite the positive result, Apple's stock price has not climbed higher since but has seen a decline, breaking down through support levels. Profit-taking after the recent surge may be a contributing factor to this downward momentum.
In the immediate aftermath of the earnings announcement, Apple's stock price experienced a decline of 6.46%. When also considering the all-time high from July 19th, the decline from that peak has reached 9.78%.
This may raise concerns, but looking at the bigger picture, Apple's stock price has seen a growth of 37% year to date.
In its quest to break the all-time high again, Apple will encounter a significant obstacle. The key level it must pass is last year's high at $182.94.
In case Apple finds further weakness, there is also a safety net in place below. The August 2022 high of $176.15 could act as a support level, and with it being a major level, price is likely to struggle getting through it.
Despite the concerns surrounding this asset, it presents a potential opportunity for astute investors. The prevailing fear among some investors can actually be viewed as a chance to acquire the asset at a discounted price, with the potential for driving up its value.
Ultimately, it all boils down to the epic face-off between support and resistance levels. Their interplay will be pivotal in determining Apple's future trajectory.
If the stock price manages to breach support levels, it might be indicative of a bearish phase. Conversely, conquering the resistance could signal a bullish trend.
At the heart of Apple's future direction is the decisive battle between support and resistance levels. How these levels interact will play a vital role in determining the company's stock price direction.
After the closing bell on Monday, August 7, the stock closed at $178.85, trading down by 1.71%.