In the second quarter, Apple’s earnings surprised, coming in at 1.40, compared to estimates of 1.34. At the same time, the company’s revenue jumped to 85.777 billion, above estimates of 84.433 billion.

On Thursday, economists expect another stellar performance, with estimated earnings at 1.60 and revenue at 94.521 billion. A better-than-expected result would boost Apple shares to new highs.

Apple Technical Analysis

On the technical side, the 4-hour chart shows the price making a slow climb in an ascending triangle pattern. It has made a series of higher highs and lows with clear support and resistance trendlines. However, the price has chopped through the SMA while the RSI has failed to respect the pivotal 50 level, indicating a corrective move. Therefore, although the price is climbing, bulls and bears have almost equal strength.

As the price climbs within the ascending triangle, it gets tighter and tighter, indicating a drop in volatility. Moreover, it is a sign that traders are undecided. However, this will likely soon change with a significant catalyst.

The price faces solid resistance at the 237.13 level that has kept bulls at bay. However, a significant catalyst might prompt bulls to break above this resistance and make new highs in the uptrend. At the same time, the price would break out of its ascending triangle to indicate a surge in bullish momentum and a steeper trend.

However, there is also a chance that the catalyst will lead to a breakout to the downside. Such an outcome would pave the way for bears to revisit the 220.25 support level. A bigger decline would target a lower support at 199.21. Whichever the direction, a breakout from the triangle will likely lead to an impulsive move.

On the daily chart, the price has also paused to trade in an ascending triangle. However, here, the resistance line is horizontal at the 237.13 level. Before this pattern, the price was trading in a strong uptrend, respecting the 22-SMA as support. At the same time, the RSI stayed near the overbought region, suggesting solid bullish momentum. Therefore, the ascending triangle pattern might only be a pause in the uptrend.

However, the pause has shown some weakness in bulls as the RSI has made a bearish divergence. This is a sign that bulls are exhausted and might give up control, leading to a reversal.

Nevertheless, bulls might only be waiting on the sidelines ahead of the earnings report. A positive report would see many return to take big positions that would propel the price past the 237.13 resistance level. On the other hand, a downbeat report would motivate more investors to sell, leading to a breakout to the downside. This would allow the price to revisit the 220.25 and 199.21 support levels.