As Apple prepares to release its earnings tomorrow, investors are closely watching how its stock will respond, especially following Alphabet’s positive earnings surprise yesterday. Alphabet's pop has reinforced optimism that the AI growth trend remains strong, which could boost Apple’s performance as well. In this article, we’ll take a closer look at Apple’s stock movements, key support and resistance levels, and the outlook for traders based on recent technical analysis.

Apple Stock Price Trends and Key Levels to Watch

Current Price Action and Support Zone
On Apple’s daily chart, its share price has consistently gravitated towards the lower trendline of its wedge pattern, testing support levels. The latest support level for Apple’s stock stands at $227.18, which could act as a foundation for upcoming movements. While there was an upward breakout attempt during the week of October 14, the rally lost momentum as Apple encountered resistance around $237. This level now serves as a crucial benchmark for traders anticipating another potential rally before year-end.

Resistance Levels and Potential Breakout Targets

If Apple’s stock manages to break and close above the $237 resistance level, this could open the door to a psychological resistance zone between $243 and $250. For investors eyeing bullish momentum, this range could signal a stronger upside potential, particularly if earnings surpass expectations.

Potential Downside Risks if Earnings Disappoint

However, a disappointing earnings report, potentially due to weaker-than-expected sales in China, could shift momentum in the opposite direction. In this scenario, $227 remains the initial support level, but a break below this mark may bring Apple’s next key support area into focus between $213 and $220. This range would be critical for near-term investors looking to gauge the downside risk.

Momentum Analysis Using the MACD Indicator

Using the MACD indicator to assess recent momentum, the outlook remains mixed as Apple approaches its earnings release. The narrowing price range suggests a buildup that could result in a significant move in either direction, depending on tomorrow's earnings outcome.