The price of AAPL stock went from an all time high of 134.46 on 4/28/15 to a low of 92 on 8/24/15, a decline of 32% from its high. It was sitting at 96.66 after yesterday's close, 28% below its all time high. On February 26, 2016, it will report its latest quarterly results after the market close.
Here are two possible scenario for setting up AAPL to report its earnings. If the price for AAPL stock is to drop after disappointed earnings, then a price rise prior to the sell off could occur. This will give the opportunity for the large holders to unload before the selloff. If the price of AAPL's stock is expected to rise after earnings, then a selloff prior to earnings is a reasonable expectation, as it will transfer the stocks from the weak hands to the strong hands.
The weekly chart below shows how the price is sitting at the supporting trendline of a long term rising price channel.
(click on the chart to enlarge)
The daily price chart highlighting the completed move from the recent head & shoulder pattern. This removes a possible technical pattern that could impede the inflection point near 96.66 from setting off either a rally or a selloff.
Disclosure: No position on AAPL.
