Apple Inc. (NASDAQ:AAPL) almost hit new highs

Apple Inc. (NASDAQ:AAPL) almost hit new highs

Apple Inc. (NASDAQ:AAPL) almost hit new highs

Just when it looked like the run may be over, shares of Apple (NASDAQ:AAPL) found their groove. Apple stock ended July at $190 and a month later was at $230. The 40 point gain gave AAPL a one-month return of more than 21%, causing many investors, me included, to expect a pullback.

Once shares fell below and failed to get back above the 20-day moving average, a date with lower prices seemed inevitable. But Apple wanted to play hard to get, and it succeeded as shares climbed back up the ladder. The stock almost hit new highs on Monday, before backing off those levels later in the session.

But it proposes an interesting question as we head into October: Should we buy Apple stock heading into the fourth quarter?

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 238.64.

The projected lower bound is: 221.42.

The projected closing price is: 230.03.

Candlesticks

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 28 white candles and 22 black candles for a net of 6 white candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with APPLE INC), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 87.9745. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 8 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 64.93. 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 18 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 132.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 8 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 1 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 2.020 at 229.280. Volume was 8% below average (neutral) and Bollinger Bands were 19% narrower than normal.

Open High Low Close Volume___
227.250 230.000 226.630 229.280 24,788,170

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 222.67 214.72 187.12
Volatility: 17 26 27
Volume: 32,771,136 31,334,136 30,963,758

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.

Summary

APPLE INC is currently 22.5% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 0 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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