Apple will report its June quarter earnings on 22 July.  Bloomberg reports consensus earnings per share expectations of $1.225.  Technical traders may be interested that last night’s trading reveals a couple of signs that buying momentum in this stock is beginning to falter before this report

Apple stock divergence signs

  • The RSI is displaying divergence to price making a lower high and starting to trend down from the overbought zone, with a break below recent support
  • For candlestick traders, last night’s market produced a bearish engulfing pattern. This is a large red candle whose body engulfs the previous small green candle. A red candle indicates a trading session in which the close price is below the open.

This loss of momentum tends to precede either a period of sideways movement or (more interestingly from a trading point of view), a trend reversal with a new downtrend emerging

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