Apple Report Drives Bearish Sentiment for AAPL Stock

Apple, the largest U.S. market-cap company, released its Q3 earnings report on October 31:

→ Earnings per share (EPS): Actual = $0.97, Expected = $1.60
→ Gross revenue: Actual = $94.9 billion, Expected = $94.5 billion

The nearly 40% miss on EPS likely disappointed investors, contributing to bearish pressure. As seen in AAPL’s chart, prices dropped below $220 — a level last seen in early September.

Could the decline deepen? Today’s technical analysis of AAPL presents a few arguments for a bearish outlook:

→ In 2023-2024, the stock moved within a broad range between $167 and $200. When the bullish breakout of this range occurred in June 2024, $233 became a potential target, showing signs of resistance. The resistance around $233 is also reinforced by the upper boundary of a long-term ascending channel (in blue).

→ Trendline slopes have been gradually flattening (in purple), a sign of waning buying momentum.

This weakening demand near $233 may lead to further bearish attempts to push AAPL below $220 toward the median of its long-term rising channel.

Meanwhile, Wall Street analysts remain optimistic. According to TipRanks:
→ 23 of 34 analysts recommend buying AAPL;
→ The average 12-month price target is $245.

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