With Apple (AAPL) set to report earnings tonight, TheStreet's Eric Jhonsa cautions not to let the iPhone hype distract you from the company's other key businesses.
Let's take a look at Apple's chart as well those of other prominent tech names.
Apple is pointed higher on the charts despite all the noise in the marketplace.
In this one-year daily bar chart of Action Alerts PLUS holding AAPL, above, we can see a nice rally from the May low. Prices have climbed some $30 from that nadir with periodic pullbacks along the way higher. The rising 200-day moving average line has given us two great buying opportunities as prices retested that line in September and November. AAPL is above the rising 50-day moving average line.
The On-Balance-Volume (OBV) line has moved up and down with the price action the past year and recently made a new high for the move up confirming the price gains. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish configuration.
Bottom line: I would continue to trade AAPL from the long side risking below $115.
Taiwan Semiconductor Manufacturing (TSM) manufactures most of Apple's A-series processors as well as many iPhone/iPad chips supplied by third parties. TSM's chart is poised to make new highs. In this one-year daily chart of TSM, above, we can see an uptrend for much of 2016 and a recent four-month consolidation pattern that can support further gains.
TSM is above the rising 50-day moving average line and the rising 200-day moving average line. The OBV line has been rising all year and signals aggressive buying. The OBV line can lead and it has already broken out to a new high before prices break out.
The MACD oscillator recently moved above the zero line for a fresh go long signal. The consolidation pattern since October looks like a small saucer or cup formation.
Bottom line: With prices near their highs with a strong chart background, a breakout should happen soon -- stay long.
This chart of chip supplier Skyworks Solutions (SWKS) , above, is still bullish. Prices made a five-month consolidation and then gaped to the upside earlier this month. SWKS is above the rising 50-day and the rising 200-day moving averages.
The OBV line has been strong since late June and has confirmed the price advance. The MACD oscillator is in a bullish setup above the zero line.
Bottom line: SWKS looks capable of heading higher to the $100-$110 area to retest the highs of 2015.
Qualcomm (QCOM) has broken down on this chart, above, and the selling does not look exhausted yet. Prices gaped lower this month. QCOM failed to break above the declining 50-day moving average and then gaped below the rising 200-day moving average line. Prices are testing a support area from March through July.
Prices are pointed down and if they move much below $52 (roughly the middle of this support area) then it increases the likelihood that prices can weaken further. The OBV line has turned lower as has the MACD oscillator.
Bottom line: QCOM could decline to $50 in the near term.
Lastly, Intel (INTC) is poised the try the upside. INTC is retreating slightly in this daily chart, above, but the overall pattern is constructive. From an October high INTC corrected and recovered to challenge the highs again. The OBV line was pretty steady in October and November as the correction unfolded and it has recovered in the past two months. The MACD oscillator is also bullish.
Bottom line: A weekly close above $38.50 is bullish and investors should buy or increase their long positions.
