Apple Absorbs Sellers After Mixed Q2 Report

Apple Inc. AAPL’s second-quarter earnings report was mixed at best. With the stock recently trading at all-time highs, it’s not surprising that the knee-jerk market reaction to the iPhone sales and revenue misses was a sell-off on Wednesday morning down to around the $143 level. However, Apple quickly bounced off the $143 level and has mostly held flat on a weak day for the market Thursday.

Apple’s resiliency after its earnings report indicates there are still plenty of Apple buyers in the market at these elevated levels.

For now, Apple technical traders will be looking for the stock to close above its Tuesday high of $147.51, its highest closing price ever. Apple also set a new intra-day all-time high on Tuesday at $148.09.

With Apple buyers already sitting on year-to-date gains of 26.3 percent, the stock endured very little profit-taking this week ahead of the highly-anticipated iPhone 8 launch later this year. Analysts are expecting a major market cycle from the 10-year anniversary iPhone model.

The little profit-taking that did occur was met by aggressive buying that sent Apple shares right back where they started prior to the earnings report.

Prior to this week’s breakout to $148, Apple had spent the past month trading mostly in a range between $140 and $145. Apple’s Wednesday bounce may have confirmed that short-term resistance at $145 may now serve as support as Apple marches higher. For now, traders will keep a close watch on the $148 and $145 levels for a gauge of which direction Apple is headed next.

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