Apple (AAPL) reported earnings earlier this week. As always, I like to give a company’s charts at least 1 full day of activity after earnings before trying to analyze the charts again. Since it has now been a couple of days, let’s review some post-earnings charts for Apple.

Apple (AAPL) – Short Interest

The first chart for Apple is a 1 year daily candlestick chart with the short interest totals by reporting date listed. I’ve also made a note about the market makers keeping a lid on Apple’s share price. Maybe its the market makers, or maybe its someone else wanting more shares at lower prices.

Analyzing Short Interest Totals for Apple (AAPL)

The most recent short interest shot up from 47 million to 60 million shares. That total of 60,135,782 appears to be the top of a Wave 3 in a Bullish Impulse Wave Pattern too. We’ll look at that next.

Apple (AAPL) – Elliott & Moving Averages

Something that hasn’t yet been discussed in Apple’s new uptrend is that on September 1, 2016 Apple (AAPL) had its Golden Cross develop from a moving average perspective.

[s2If !current_user_can(access_s2member_level1)]If you want to continue reading this article, you must first sign in. Not a Trendy Stock Charts member? Then consider one of the subscription plans.[/s2If][s2If current_user_can(access_s2member_level1)]That is something that longer-term investors in Apple will want to take note of.

Analyzing Apple Using Moving Averages and Elliott Waves

When using moving averages for trading, there are a couple of guidelines with the 20 Day Moving Average:

When a new uptrend starts, the first pullback below the 20 Day moving average represents a buy-in opportunity. That is perfectly seen on AAPL’s chart.

The second pullback below the 20 Day moving average becomes more risky but can be purchased.

When I apply those rules and overlay the Bullish Impulse wave pattern I see developing, the moving average rules make perfect sense. The second pullback below the 20 Day moving average is happening now and that appears to be the Wave 4 in its Bullish Impulse wave pattern. I think Apple (AAPL) is in Wave C of an Expanded Flat wave pattern. The 50 Day moving average should provide support.

If the market continues its weakness in the short-term though, do not be surprised to see Apple re-test the support at its 200 Day moving average again before taking off. A bounce from the 200 Day moving average would not violate any Bullish Impulse wave pattern rules as Wave 4’s pullback would not enter into the price territory of Wave 1.

Apple (AAPL) – Summary

This appears to be the last dip to purchase shares and go long. Once Apple (AAPL) nears the $120 – $125 range in the short-term, I anticipate selling some shares and looking to repurchase them at lower prices.

Once Apple (AAPL) completes its Bullish Impulse wave pattern, it will need some time to correct. So be certain to take some profits as bearish indicators are noted so those profits can then be used for something else, like maybe some gold. But if you are a longer-term investor, keep in mind the Golden Cross that developed and consider adding to your position on a re-test of the 200 Day moving average.[/s2If]