Apple Inc. (NASDAQ:AAPL) — Apple provided the markets with a rare earnings disappointment after the bell Tuesday. Revenues and earnings missed, and Q3 forecasts also let down Wall Street analysts.
Technically, Apple has been trading within a bull channel since mid-May. The initial support for the channel is the bullish support line at Monday’s low of $588, followed by the 50-day moving average at $580, which is its stop-loss point. That point was violated Wednesday morning. The next important support is at the June 28 low at $565. Both the stochastic and MACD have issued a sell signals.
Unless Apple can quickly reverse and close above its 50-day moving average, the near-term trend is down. A reversal is only a remote possibility in that Wednesday’s breakdown was accompanied by a bearish breakaway gap from $598.51 to 580.80. Even though the first support is at $565, it is likely that the May closing low at $530 is a more meaningful target for long-term buyers.