What's going on moon gang, i hope all is going well. My name is matt and in this video i will be talking about the most valuable us company i'll, be doing a technical analysis of apple stock, so we're better prepared for the company's upcoming earnings announcement. But before i dive into that, don't forget to join the moon gang by hitting the subscribe button if you're new to the channel, i'm currently on the road to 5 000 subscribers and your support with that would be truly appreciated. It would also be great if you could drop a like, because it really helps with getting this video recommended to other traders and investors who might be interested and now with that out of the way, let's get started.

Apple trades, under the stock ticker aapl and as previously mentioned, the company has an upcoming earnings announcement. That report will be released on thursday october 29th, so make sure to mark your calendars. The market just finished its third full trading week in the month of october and when it closed on friday, apple stock was at 115. At this price level.

That means that apple has a market cap just under two trillion dollars, which makes it the most valuable company. In the us over the past week, apple is down three percent, but over the past three months is up 21 and if you bought apple on january 1st of 2020, you would be up almost 57 in more of a short-term view. Apple is essentially break even on the month of october. It's down 0.6.

If you watch my previous apple videos, you will be familiar with this technical analysis. As a quick recap, apple was putting in higher lows and higher highs from march until september, and then the company went through a 4-1 stock split which prompted this decline and even though apple was still putting in higher lows. It started posting lower highs, which created this overall consolidation pattern. This pattern was then broken by the hype surrounding the iphone 12 event and the stock was able to post a new higher high relative to the previous one.

Unfortunately, it was rejected at the psychological level of 125 and it came down to the support around 119 after battling it out here for a few days, the bull camp loss, which brings us to their current levels at 115. As things currently stand, it really seems as if the market is attempting to see how much demand there is at the support. Turn resistance turn support of 112. If the stock does return to this level, that would be an additional decline of 2.4 percent.

I personally believe there's an extremely good chance. The stock will bounce in this region because the bulls previously found value at this price in the start of october and in mid-september it will align with this bottom trend line and the upcoming earnings announcement could be the exact catalyst that the stock needs. From more of a fundamental perspective, the iphone 12 seems to be extremely popular, judging by the amount of pre-orders, and in fact some analysts are calling this a super cycle. If you end up paying attention to this earnings report, i would recommend looking to the number of expected unit deliveries for the iphone 12, because the projections right now are between 75 and 80 million.

So, if apple is able to beat that there's a good chance, the stock will pop. If this bullish scenario were to play out, there's three major areas of resistance, i'll be paying attention to the first comes at 119, which would be a gain of 3.3 percent. The next comes at the previous high in psychological level of 125, which would be a gain of almost nine percent, and then we have this previous resistance at 129, which will also align with this top trend line, and that would be a gain of 12 percent granted. These levels of support and resistance are more important if you're a swing trader and have a shorter time frame.

Personally, i'm a long-term investor on apple and would be happy to hold my shares for years to come to get a slightly different, take on what's going on with the stock, let's switch over to the four hour chart. Now we can get a more detailed idea about. What's been going on with apple since the stock split first, there was an abrupt drop and then the stock became caught in this downward channel, which is referred to as a bull flag. This technical structure is called a bull flag because they commonly break upwards and that's exactly what happened after this breakout.

The stock was then in this upward channel, which is called a bear flag because guess why they commonly break downwards and that's how things played out and now we're in a new, smaller bull flag. So, as a quick recap, there was this brutal sell-off, which turned into a large bull flag. Then we had a medium bear flag, and now we have a very small bull flag. So not only is apple stock in the classic abcd pattern, but you could also say it's consolidating, because the range of these channels is getting smaller and smaller and in the world of the stock market, consolidation is followed by expansion.

So i'm expecting some volatility in the near future. To be fair, though, you don't have to have a crystal ball to accurately call for an increase in volatility. On top of the fact that there is an upcoming earnings announcement, there's a lot of things going on politically. There's talks surrounding the next stimulus package and, of course, there's a us presidential election in early november.

All these things will most likely have an impact on the stock market, and it's not that crazy to think there will be an impact on the largest company within that stock market, i.e, apple, moving forward i'll, say it here now. I believe that the support at 112 will be an excellent opportunity to buy shares of apple. Fundamentally, i really like what apple's doing their bundled services will make their overall ecosystem that much stronger. There seems to be a lot of demand for the iphone 12 and i think they will do extremely well.

This holiday season from a technical perspective, not only is 112 in extremely strong support, but we're currently caught in this bull flag. The last time that happened, the stock broke upward, so i'm basically just calling for history to repeat itself as a quick heads up, there is an additional resistance on this time frame that we didn't see on the daily chart. There's a chance. The bears might put up a fight around 124, which is not only a previous high, but the start of this first bull flak.

Oddly enough, this is pretty close to my most recent purchase of apple. My current cost basis is the low 120s, but, as i mentioned before, i'm looking to lower that cost basis by buying more shares around 112. feel free to. Let me know your thoughts on if this is a good plan or not, do you think the stock will bounce from here or continue its track downwards, as things continue to develop both fundamentally and technically i'll make sure to keep you updated in future? Videos make sure you hit the subscribe button, so you don't miss any of those updates and, as a very brief side note, don't forget to monitor qqq this etf tracks, the nasdaq 100, which is a tech heavy index for obvious reasons, the nasdaq and apple stock are Pretty intertwined, i wanted to bring this up because the qs are currently battling it out at the support of 282, which was previous resistance depending on, if it bounces or breaks, there's a very good chance.

It could have a correlated impact on apple stock price, just some food for thought. To sum things up, i am bullish on apple and i'm planning on buying more shares of the company if its stock ever returns to the support at 112. But obviously these are my own opinions and there's a chance. I could be wrong so make sure to do your own research.

I would love to know your thoughts on apple stock, leading up to the earnings announcement and how you think things will play out afterwards. Let me know in a comment below, if you made it to this point in the video you're, an absolute legend in my book. If you want to support my efforts in making more videos like this there's a few things you could do to help me out, you could drop a like leave a comment and join the moon game by hitting the subscribe button. Don't forget to turn on your notifications.

So you don't miss any of my future videos thanks for watching and until next time best of luck in the markets. You.