What's going on moon gang, i hope you're having an awesome day. My name is matt and in this video i will be discussing apple's upsetting conclusion to the month of october. I will be talking about the company's most recent earnings announcement and then i'll be doing a technical breakdown of its stock. So we have a better idea of what to watch for in the future, but before i get into all of that, if you're new to the channel don't forget to join the moon gang by hitting the subscribe button, my goal is to hit 5 000 subscribers by The end of this year and your help with that would be truly appreciated.

Also, it would be great if you could drop a like, because it really helps with getting this video in front of other people who may be interested and now with that out of the way, let's get started. Apple reported its q4 earnings after the market closed on thursday october 29th, and unfortunately, there was not a positive reaction to it when the markets reopened. Here are the key details. You should be aware of apple falls as strong ipad and max sales.

Don't make up for iphone decline. Apple reported 4th quarter earnings on thursday that slightly exceeded wall street expectations, but the company did not offer investors any guidance for the quarter ending in december. The lack of fiscal first quarter. 2021 guidance for apple means that investors and analysts.

Don't get a hint of how apple is projecting the sales performance of the iphone 12, which went on sale in october. More specifically, for the most recent quarter, apple was able to beat on earnings per share. They beat revenue expectations by a billion dollars. Their iphone revenue was down by 1.5 billion, but their services was up by 500 million.

Their miscellaneous products was up by half a million, their mac revenue was up by 1 billion, and their ipad revenue was up by 700 million. Obviously, this 20 decline in iphone revenue isn't good, but the deficit was made up by the outperformance in these four business sectors. In my most recent video related to apple, i mentioned that quite a few analysts were expecting this past quarter to be somewhat boring and that's exactly what happened with that being said, though, they were still hoping to get some sort of insight to how the iphone 12 Was performing but that didn't happen. The reason for this, according to the ceo tim cook, is that if you look at the case count referring to the rona, the case counts are climbing: in western europe they're climbing in the united states, and so there's still a sufficient level of uncertainty out there.

We don't believe that's an environment to guide into. However, cook said that he was optimistic about iphone 12 sales and initial data points are really quite good. Personally, i believe these comments are pretty logical and promising, but as we're about to see in the charts, the market did not agree with me before we switch gears. You should know that there's quite a bit more detail in this article, there's stuff about what's going on with china, information about the apple watch and they even discuss apple one, which is apple's new, bundled services package that just went live.

I would highly recommend checking this out if you search this headline, it should easily be found on google. The stock market did not have a good time closing out the last trading day of october. The s p 500 was down one percent. The nasdaq 100 dropped, 2.5 percent and apple was pummeled till the tune of 5.6 apple which trades under the ticker aapl closed out the month, just below 109.

per share, and this happened on pretty considerable volume. The average volume over the past 10 days has been 120 million shares, but the most recent volume was 190 million at this price level. That means that apple no longer has a market cap of two trillion dollars over the past week. Apple dropped: five percent.

Over the past month it dropped almost seven percent, but from january of 2020, until now it's up 48. As a very brief recap of how apple got to where it is. At the end of july, it was announced that apple would be going through a 4-1 stock split, and this prompted a 43 rally. But when the stock split actually went through, there was a sell-off and at one point it was down 24 from there.

There was a bit of consolidation: the stock was putting in higher lows and lower highs, but in mid-october it was able to break above this resistance at 119 and put in a new high relative to the previous one. This gap and mini rally was prompted because of the iphone 12 event. Unfortunately, there was no follow through and the stock actually has now declined 13 from that high. What's more worrisome than the magnitude of this drop is that the bears have been able to push the stock through both this trend line and the support at 112., because enough demand wasn't found here.

The next place i see apple catching itself - would be somewhere between 105 and 100. Both 105 and 103 were previous lows and then 100 is a key psychological level from the most recent close. This would be an additional decline of somewhere from 3.5 percent to 8.2 percent. I'm not saying that apple has to drop to this region before it bounces.

I just think it's a strong possibility, because of all the volatility prompted by the presidential election. If the bull camp decides to step in early from the most recent close, the first resistance would be the previous support at 112. That would be a gain of three percent. The next one would come at 119, which could align with the bottom trend line.

That would be a gain of nine percent, and just so you know for apple to return to its all-time high at 138. That would be a 27 gain to get a more granular idea of. What's going on with apple, let's check out the four hour chart, starting in september, apple has gone from a large bull flag, it broke up into a smaller bear flag and then that broke down into an even smaller bull flag if you're keeping up to date. With my apple videos, you know heading into this last phase i already owned apple and my average cost was the low 120s heading into the earnings announcement.

I wanted to buy more shares of apple at the support of 112.. I ended up splitting this order into two parts, one half at 113 and then the other half at 111. I decided to do this partial front run for a few reasons. Number one is that i thought this earnings announcement was going to be bullish and the stock market would react kindly to it.

Number two is that this technical structure is bullish, especially with the key support at 112.. I thought a breakout was very likely and number three. The rsi was starting to get very low, which made me think that the sellers were getting exhausted. Any reading below 30 is commonly considered to be oversold.

To my dismay, this breakout was more of a fake out breakout, but i was able to fill the second half of my order at 111. with my two most recent purchases. My cost basis for apple is now around 118 dollars. I have no intentions of swing trading.

Apple, if possible, i would like to hold all of my shares for years to come if the stock continues downward, i'm planning on buying more shares of the company around the 100 mark. If the stock happens to drop through this region of support, i would be a little worried because, as we saw on the daily chart, that would mark a new lower low and it would also be an official change in trend from bullish to bearish. But to be fair, that is a shorter term outlook. I strongly believe, given enough time, apple's stock price will be much higher than it is now, as things continue to develop both fundamentally and technically i'll make sure to keep you updated in future videos so make sure you have your notifications turned on.

I would love to know your thoughts on apple stock in a comment below. Do you think it's time to buy, sell or hold? If you enjoyed this video, don't forget to drop a like, and if you haven't already don't forget, to join the moon gang by hitting the subscribe button and as a quick side note if you're interested in the charting software that i use there's a link to a Free 30-day trial in the description of this video thanks for watching and until next time best of luck in the markets.