Apple Technical Setup: Support Test

Apple (AAPL) is approaching a technical support level that has historically attracted buyers. The simple read is that the level will hold. The better read involves examining volume and momentum. If volume is declining on the test, it suggests selling pressure is exhausted. If volume is rising, the breakdown risk increases. Confirming factors include a bullish divergence on the RSI and a low-volume test. Invalidating factors include a close below support on above-average volume. The next catalyst is the earnings report. Traders should watch for a reaction at the open. For a full profile of the stock, see the Apple (AAPL) profile.