Apple stock recorded a stunning rally since the beginning of the year, marking an overall gain of 19% during the period. This week is the earning releases for the stock and the price is battling with the 38.2% Fibonacci retracement level of the down leg from 176.00 to 124.00 at 143.85.
The RSI is currently increasing positive momentum towards the overbought region, while the MACD is strengthening its movement above its trigger and zero lines, both hinting that the next move in prices could be on the upside rather than on the downside.
Should the market extend its gains, resistance could be met between the 200-day simple moving average (SMA) at 147.80 and the 50.0% Fibonacci at 150.00. A significant leg above this area could send prices towards the 153.55 barrier before the market retests the 61.8% Fibonacci at 156.10.
On the flip side, if the price dives, immediate support could be met at the 50-day SMA at 138.60 and the 23.6% Fibonacci at 136.30. Steeper decreases, though, could drive Apple south towards the 133.60 support.
In the bigger picture, the stock is bullish as long as it holds above the descending trend line. In case it violates this line to the downside again, bears could take the upper hand.