Apple Shows Interesting Weekly Technical Setup

Apple (AAPL,us) shares have begun the week on the backfoot as reports indicate that the iPhone15 may be seeing some weakness in China. According to analysts at Jefferies, iPhone sales have experienced a significant decline in the double-digit range when compared to the iPhone 14 Pro. This drop can be attributed, at least in part, to the launch of Huawei's latest offering, the Mate 60 Pro, which hit the market in August.

Apple is due to release its quarterly earnings on 2 November and forward guidance will be pivotal here because the company looks to be potentially setting up on the weekly time scale. However, a catalyst is likely needed.

There has been weakness in the company's share price since July, but as we head into earnings season, the technical landscape has perked up. A bullish cross by the EMAs would be a fist sign of bullishness. I.e., if the green 5-week EMA crosses above the orange 10-week EMA (black ellipse), it would put the EMAs into a bullish formation. This would be emphasised by a cross of the weekly RSI to a position above 50, which would connote that the underlying momentum is tilting towards positive. If the RSI maintains above 50, this will provide a momentum support for the AAPL.us share price. Another bullish signal would be if the weekly candles breakout above the down sloping green dashed trendline.