Apple Inc. (NASDAQ:AAPL) analysts have turned modestly more positive ahead of the company’s earnings next week

Apple Inc. (NASDAQ:AAPL) analysts have turned modestly more positive ahead of the company’s earnings next week

Apple Inc. (NASDAQ:AAPL) analysts have turned modestly more positive ahead of the company’s earnings next week

Apple Inc. analysts have turned modestly more positive ahead of the company’s earnings next week, but they don’t seem too happy about it.

At least four firms have raised their price targets on the stock over the past two days, but in each case, the call was tempered with caution, particularly over iPhone sales.

Wolfe Research lifted its target by $10 to $185 on Thursday but said it “wouldn’t chase” the shares, which it described as overbought. “The iPhone faces headwinds, China relations still could blow up, we don’t see major new hardware in the next 12 months, and the stock’s discount to the market has closed,” analyst Steven Milunovich wrote in a note to clients.

This was echoed by UBS, which raised its target by $20 to $235 while cautioning that Apple’s iPhone mix “remains challenging.” The upcoming results, however, “should be fine.”

These followed similarly tepid comments on Wednesday from Bernstein and Goldman Sachs, the latter of which lifted what had been one of the lowest price targets on Wall Street.

Goldman’s Rod Hall said his target hike was due to “less short term downside as well as a change in our valuation methodology.” At the same time, he warned that “European consumer sentiment implies the possibility for worse demand there” and there’s “increasing potential” for Apple to miss expectations for units and average selling price toward the end of the year.

Bernstein said Apple’s second-quarter numbers “appear safe” although “next year’s iPhone cycle appears uninspiring, and the stock’s key question — the structural lengthening of iPhone replacement cycles — remains unresolved.”

Of the four price target increases, only UBS’s implies upside from current levels, while the overall average target of $201 is about 3 percent below the current stock price. Apple is the only one of the so-called FAANG stocks where the average price target is below where the shares are trading.

Apple fell 0.4 percent on Thursday. The stock has risen 45 percent off a January low and recently closed at its highest level since November. The shares are just 3 percent away from regaining a market capitalization of $1 trillion, although Microsoft Corp. beat it to that milestone Thursday as it retook the mantle as largest U.S. stock.

Apple’s results will be released after the market closes on Tuesday. Analysts expect adjusted earnings to fall about 13 percent on a year-over-year basis while revenue declines 5.9 percent — the biggest such drop since 2016.

Overall, the bias in prices is: Upwards.

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

By the way, prices are vulnerable to a correction towards 191.85.

The projected upper bound is: 211.82.

The projected lower bound is: 200.12.

The projected closing price is: 205.97.

Candlesticks

A black body occurred (because prices closed lower 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.

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 80.9921. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 9 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 72.23. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 22 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 106.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 9 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 2 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -1.880 at 205.280. Volume was 43% below average (neutral) and Bollinger Bands were 9% narrower than normal.

Open High Low Close Volume___
206.830 207.760 205.120 205.280 18,543,206

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

Moving Averages: 10-period 50-period 200-period
Close: 202.77 186.91 191.78
Volatility: 16 20 38
Volume: 22,384,338 26,298,154 33,539,700

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 7.0% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect very strong flows of volume into AAPL.O (bullish). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 62 periods. Our momentum oscillator is currently indicating that AAPL.O is currently in an overbought condition.

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