Apple and Amazon earnings after the bell. What is expected? What are the charts saying?

<p>Apple and Amazon will release earnings after the bell today. </p><p>So what is expected?:</p><p>Estimates for Apple's earnings:</p><ul><li>Revenue: $81.7 billion</li><li>Earnings per share (EPS): $1.19</li><li>iPhone revenue: $39.9 billion</li><li>iPad revenue: $6.4 billion (down 11% on the year)</li><li>Mac revenue: $6.6 billion</li><li>Other products: $8.4 billion</li><li>Services: $20.8 billion</li></ul><p>The revenues are expected to fall for the 3rd consecutive year with decreases in iPhone, iPad, wearables, and Mac sales. However the service division is expected to rise over 5%.</p><p>Estimates for Amazon earnings:</p><ul><li>Earnings per share (EPS): 35 cents</li><li>Revenue: $131.5 billion (up 8.5%)</li><li>Amazon Web Services (AWS) revenue: $21.8 billion</li><li>Advertising revenue: $10.4 billion</li></ul><p>The revenues have been in single digits for 5 of 6 quarters. </p><p>AWS is a significant growth driver but its pace is slowing. Q1 AWS sales increased around 16% last quarter which was the lowest increase since 2015. Analysts are expecting a further slowdown to 10% in the current quarter. Having said that AI workloads, cloud profit margins, and easing comparisons are expected to contribute to AWS revenue growth from Q3 onward.</p><p>Cost-cutting will be of interest with expectations of improved retail margins. The company is also reported improvements in delivery speeds and efficiencies in its fulfillment network.</p><p>What are the technicals saying: </p><p>Looking at the daily chart of Apple (see daily chart below), the price today has broken below a lower channel trendline near $192.40. Getting back above that trendline is needed to increase the bullish bias. The current price is trading at $191.85 </p><p>The high for the year – and also all-time high price – came in back on July 19 at $198.19. Last week's high reached $197.17. Those 2 levels are targets on a move back above the lower channel trend line. Needless to say getting above the all-time high opens the door for more upside potential</p><p>Targets on the downside now include:</p><ul><li>The swing low from July 11 at $186.57. </li><li>The old all-time high price going back to January 2022 at $182.87. </li><li>The 38.2% retracement of the move up from March 2, 2023, comes in at $177.44</li><li>The 100-day moving average is at $175.94</li></ul><p>Looking at Amazon (see chart below), the high price this year reached up toward the 50% of the move down from the all-time high. That midpoint level comes in at $134.74. The high price for the year comes in at $136.58. Those 2 levels are key targets on a move to the upside. The current price is at $129.06.</p><p>On the downside, the upward-sloping lower trendline comes in at $125.50. Below that, the broken 38.2% retracement of the move down from the all-time high comes in at $122.14. Finally, below that and traders will start to look toward the rising 100-day moving average at $115.57.</p>

This article was written by Greg Michalowski at www.forexlive.com.