Berger: Stay Away From Apple Until Earnings

Serge Berger is a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. 

The Steady Trader Head Trader and Investment Strategist Serge Berger recommended that traders "wait until earnings" before initiating any medium- or long-term positions in Apple Inc. AAPL. Berger also warned that if the stock closes below recent support, momentum could take the stock down to $120.

Berger also said that last week, there "was an opportunity for the stock to do something. It didn't." Without that impetus for a move in either direction, Berger argued, "tactically, people are probably better off waiting for earnings to come out."

Last week, Apple held its Worldwide Developers Conference. The stock initially traded lower on Monday and Tuesday. However, prices rebounded on Wednesday and Thursday to push the price up towards $130. Share prices fell on Friday, erasing any gains for the week.

Over the past three months, Apple has traded within a $9 range, between $123 and $132. Berger indicated that a move past either of these would be unlikely before Apple's Q3 earnings report. Apple is expected to report earnings on July 28.

In the Q2 earnings report, the company reported better-than-expected results, while also boosting the share buyback plan by $50 billion.