Apple missed its earnings and revenue numbers, however, the services sector of the business created another glimmer of hope for the company. Technical analysis shows bullish momentum building up

Fundamental Analysis

Apple announced its earning last night and blamed China for any ground it lost. There is no doubt that China has been a major player in Apple’s flagship product- iPhone. The economic slowdown in the country and the ongoing trade war aren’t making things any better. The company announced $5 billion of revenue loss as its sales fell 27% during the holiday quarter. However, investors were pleasantly surprised about the services revenue for the company which came very strong and reached an all-time high of $10.9 billion. The company’s revenue from Mac and Wearables, home and accessories also came strong, it grew 9% and 33% respectively.

Technical Analysis

Speaking from a technical perspective, the price has broken its downward channel which confirmed that the downtrend is no longer in play. The price has jumped above the 50-day moving average (shown in green) which further strengthens the above statement. However, in order for us to have the final confirmation, the price needs to move the 100-day moving average and only that will start a strong uptrend for the price.

The support and resistance are shown by the horizontal green and red lines respectively.