Apple Inc. (NASDAQ:AAPL) is being rattled to the core
Apple is being rattled to the core.
Shares of the tech giant fell Tuesday and were 1% lower at $176.51 in Wednesday’s premarket after Citi slashed its price target on the stock to $205, based on concerns over what the trade war will mean for iPhone sales in China.
Apple has now shed more than 11% this month, and with just three trading days left in May, the stock is set to post its worst month of the year.
But while the Street gets progressively more cautious — last week UBS, Goldman Sachs, HSBC and Nomura cut their price targets on Apple — some investors are saying the bad news is already priced in and that the stock is a relatively attractive buy at current levels.
“We do like Apple under 180 bucks as a long term investment,” Strategic Wealth Partners’ Mark Tepper said Tuesday on CNBC’s “Trading Nation.”
“Their deal with Qualcomm ensures they’re going to have that 5G phone next year, and we like their transition to more of the high-margin recurring revenue services businesses. So I would say at this price we like it.”
In Q2, Apple netted $11.45 billion in services revenue, about 20% of the company’s total revenue. The services business has been a key area of focus for the tech giant as it seeks to shift away from a hardware-driven business.
Apple hit an all-time intraday high of $233.47 in October, but it’s now trading nearly 25% lower.
After studying the performance charts, Oppenheimer’s Ari Wald says that while Apple may continue trading in a range, investor demand for the overall tech space will provide a floor on Apple’s slide.
Wald says the two key levels that investors should be watching are $173 and $192. In terms of technical analysis the first is support, meaning that as the stock approaches $173 investors will step in and buy, thereby driving the price higher; $192 is overhead resistance, or a level that the stock has had trouble surpassing. Until the stock can top that upper level, it will be range bound, according to Wald.
“For Apple I think the key positive here is more the view of the overall sector. For us, the macro backdrop suggests that technology should continue to outperform, and I think Apple has a bid for that. I think there’s a floor out there. But trading action has been mixed for the stock, and we are thinking about it more as a range,” he said.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 187.01.
The projected lower bound is: 167.33.
The projected closing price is: 177.17.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 9.8372. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 12 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 30.50. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 16 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -113.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 5 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 22 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed down -0.850 at 177.380. Volume was 3% below average (neutral) and Bollinger Bands were 108% wider than normal.
Open High Low Close Volume___
176.420 179.350 176.000 177.380 28,481,164
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 183.67 195.38 191.54
Volatility: 27 32 40
Volume: 30,585,460 30,425,490 34,586,968
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
APPLE INC is currently 7.4% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of AAPL.O (mildly bearish). Our trend forecasting oscillators are currently bearish on AAPL.O and have had this outlook for the last 12 periods.