It as been hard to be a shareholder of Apple (AAPL) lately.
The stock has struggled since becoming a component of the Dow Jones Industrial Average (INDU) back on March 18, 2015. On that day it closed at $128.47. The stock looked great until it set its all-time high of $134.54 on April 28. Since then it's been a volatile ride, putting its 10-quarter earnings winning streak on the line when the tech bellwhether reports Tuesday after the market close.
Analysts expect the company to report earnings of $3.24 a share. Apple stock blossomed on Friday after Piper Jaffray reiterated its overweight rating and $179 price target. They say that the upside catalyst is the release of the iPhone 7 scheduled for September.
Thanks to the upgrade, shares of Apple, at around $101.50, are down 3.7% for the year to date, compared with a Dow down 7.6% for the same period. However, Apple is in bear market territory, 24.6% below its all-time high, compared with a Dow in correction territory 12.3% below its all-time high of 18,351.36 set on May 19.
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Below is the daily technical chart on Apple, which is very simple to read. The green line is the 200-day simple moving average and the blue line is the 50-day simple moving average. When the 50-day falls below the 200-day it's called a "death cross." This technical signal indicates lower prices lie ahead, which supports an investment strategy to sell strength. A "golden cross" occurs when the 50-day simple moving average rises above the 200-day simple moving indicating that higher prices lie ahead, which is a buy on weakness strategy.
The weekly chart below is negative. The red line through the weekly price bars is the key weekly moving average (a 5-week modified moving average). The green line is the 200-week simple moving average considered the "reversion to the mean." The red along the bottom of the chart is weekly momentum (a 12x3x3 weekly slow stochastic), which scales between 00.00 and 100.00. Readings above 80.00 indicates overbought and readings below 20.00 indicates oversold. A negative weekly chart shows the stock below its key weekly moving average with weekly momentum declining below 80.00 in a trend towards 20.00.