AAPL Apple Daily Chart Earnings Today H&S

The quadruple top in Apple was interesting this year. The red lines show the neggie d that formed across all indicators at the July top, as Keystone pointed out at the time, resulting in the spank down. Price collapsed creating a gap big enough to drive a truck through. The AAPL chart is a mixed bag of slop; the easiest call is more sideways choppiness ahead but there are several key things to watch. Apple reports earnings after the bell so the news can send price violently one way or the other after 4 PM EST today.

After price crashed lower the green lines show the falling wedge, oversold conditions and positive divergence that created the bottom. Interestingly, the RSI and MACD line remained weak and bleak in August and wanted price to come back down after any bounce. Instead, the central bankers started pumping stock markets higher so individual stocks shot higher.

Over the last month the MACD line and RSI remain long and strong wanting to see another price high. The 200-day MA resistance is 120.86 and 122 is uber strong price resistance so this area may serve as a magnet for price perhaps this evening after the earnings report. The histogram stochastics and money flow are negatively diverged over the last month wanting price to trail lower for the days and couple weeks ahead. The conflicting signals promote the idea that price may stagger through 105-122 for the forseeable future.

The blue lines show a developing H&S (head and shoulders) pattern. AAPL will need to finalize the right shoulder perhaps in that 120-123 area. If price loses the 105 level the door will open to 77. Conversely, an inverted H&S vibe is occurring over the last couple months so a breach above the critical 122 R would likely send price up to the gap fill at 127-130. The black circle shows the Death Cross.

Looking at the AAPL weekly chart, the stochastics are long and strong. The 20-week MA is 117.23; watch this number. The 50-week MA s 119.39. The weekly chart is agreeable to further highs in price in the weeks ahead. The monthly chart shows a weak and bleak MACD line and stochastics crossing down into bear territory. So the monthly chart wants lower lows in price on the monthly basis.

Mixing the analysis together and sprinkling some magic dust on it all, AAPL will likely keep trading choppy sideways, a move to 120-122 is in play. If 122 is taken out then 127-130 occurs where price will top out. Apple will likely chop sideways into and through November eking out higher highs on the weekly basis. However, AAPL would be expected to top out and roll over to the downside again starting say in mid or late November or early December and lower prices would be expected moving into 2016, likely to come down and test the 105 neckline of the H&S say in December or January. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 10/28/15 at 9:08 PM EST: Yesterday, Apple earnings are a beat but iPhones a tad light of the 48.5 million expected. AAPL was up +2% in the afterhours trading, then went negative then settled about +1.7% higher. Today, Wednesday, AAPL gains +4.1% to 119.27 bumping its head against the 50-week MA resistance at 119.47.