Profit Taking Ahead of Apple’s Earnings

NASDAQ:AAPLNew York, January 23rd  ( –  Apple, Inc. (NASDAQ: AAPL) share price recently made an all time high, as it is scheduled to release earnings on Tuesday January 24, 2012 after the market closes.  The last quarter’s earnings was the first disappointment in recent years as demand built up for the 4S version of the iPhone.

The recent pullback on Friday, sliced through the 10-day moving average, which has held during the majority of January.  The move could potentially give investors an opportunity to purchase the stock near support at the 20-day moving average.  Today’s inside day is a sign of consolidation.

During late December, the 20-day moving average crossed above the 50-day moving average adding momentum to the upward move seen throughout most of January.  Very short term support is seen near the 420 level which is broke could see a quick move to test the 20-day moving average.  Support below the 20-day moving average at 414, is the 50-day moving average near 396.00.  Resistance on the technology giant is seen near the recent highs at 430. 

The 34 dollar per share difference between the high and the 50-day moving average is the average difference the share prices has stretched away from the medium term moving average during the past 52-weeks.  The relative strength index (RSI), has dipped back to the 65 level, from the 72 level which could be considered slightly overbought.  65, should be considered relatively high, were momentum is still on the rise.

The MACD is close to the zero point, and momentum is beginning to stagnate as the spread between the 12-day moving average and the 26-day moving average is about to cross below the 9-day moving average of the spread.  This is occurring near an index level near 8 which is relatively high and could signal a retracement. 

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