Gordon’s Take

While other tech stocks have taken a major beating in recent weeks, Apple has held up relatively well, dropping only about 8.5 percent from its all-time intraday high of $233.47 earlier this month.

On a recent episode of PreMarket Prep, Todd Gordon, CNBC Contributor and founder of Trading Analysis, discussed Apple’s resilience.

“It shows great relative strength in here. I know there’s a lot of questionable things about Apple in the news cycle, but the stock continues to act really well and it’s something I’m trading shorter-term and I want to hold longer-term as well,” Gordon said Oct. 26.

Apple hasn’t completely avoided the October market swoon, but it has undoubtedly been a market leader in recent weeks. Over the past three months, Apple shares are up 11.6 percent compared to an overall decline of 5.7 percent for the S&P 500.

Key Technical Levels

If Apple beats earnings expectations, the first potential level of resistance would be the 50-day simple moving average, currently at about $221. Above $221, the next potential resistance is around $224, where the stock stalled for three consecutive days from Oct. 22 through Oct. 24.

If the stock breaks lower following earnings, there is major support in the $190 to $195 region. The 200-day SMA, which has previously provided support in February and April, is currently at about $191. In addition, $195 was previously resistance in June and July before the stock gapped higher following Q2 earnings. A dip back down to the low $190s could also serve to close that previous earnings gap.

As of 3:25 p.m ET Wednesday, Apple traded around $219.90 per share.

Listen to the full interview with Todd Gordon at 32:45 in the podcast of the show below

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