Apple’s share price is down 0.5% this Thursday, as the price attempts to close the upside gap that occurred when the company’s shares soared in after-hours trading.
The after-hours 4% price surge occurred as Apple clocked $1.40 earnings per share (consensus of 99 cents) and a revenue of $89.58 billion (consensus of $77.36 billion) that represented a 53.7% year-on-year growth.
The company also announced that sales of its flagship products soared into double-digit territory, with revenue from iPhone sales topping 65.5% growth year-over-year to complete a blowout quarter for the company.
The company has also announced a $90billion share buyback program but declined to provide forward guidance on the second quarter.
Technical Outlook for Apple
Apple’s share price is on the verge of a break of the bullish flag on the daily chart, having had a substantial intraday violation. However, the closure of the upside gap presents an obstruction to this move. A successful break of the flag sets the tone for a measured move that could terminate at the 145.08 resistance level (25 January high). This move has to take out resistance barriers at 137.93 (9 February high) and 139.97 (22 January high) to attain the price projection.
On the flip side, bears would only find some joy if there is a rejection at 137.93 or a failed break of the flag pattern. Only a breakdown of the 125.51 downside barrier and the 119.82 support pivot would open the door for an additional correction that targets 116.00 (8 March low) and 112.58, in that order.
Apple Shares; Daily Chart
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