Apple Inc. (NASDAQ:AAPL) Bulls take bite out of Apple calls

Apple Inc. (NASDAQ:AAPL) Bulls take bite out of Apple calls

Apple Inc. (NASDAQ:AAPL) Bulls take bite out of Apple calls

Traders are taking Tuesday bullish position on Apple ( AAPL ). So far, 3,134 contracts of the Oct. 215 call have changed hands, against open interest of 924 contracts. Pricing has been in the high half of the bid-ask spread, indicating that these calls about being opened from the buy side.

InvestorsKeyhole Trade Alert

IK-> The technicals for AAPL ($185.21 down $2.78) are bullish with a downward trend. The stock has support around 181. Look at the Aug. 155/160 bull-put spread for a 25-cent credit. That’s a 5.3% return and the stock has to fall by 13.6% to cause a problem.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 193.26.

The projected lower bound is: 178.75.

The projected closing price is: 186.00.

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.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 6 falling windows in the last 50 candles–this makes the current falling window even more bearish.

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 22.0984. This is not an overbought or oversold reading. The last signal was a sell 6 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 44.14. 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 8 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 -185.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 7 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 sell 6 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -3.050 at 185.690. Volume was 100% below average (consolidating) and Bollinger Bands were 56% narrower than normal.

Open High Low Close Volume___
185.140 186.330 183.450 185.690 32,837

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 190.74 182.26 171.59
Volatility: 12 26 26
Volume: 22,764,250 27,856,540 31,020,678

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 gapped down today (bearish) on light volume. Possibility of a Common Gap which usually coincides with a lack of interest in the security. Common Gaps are fairly irrelevent for forecasting purposes. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
APPLE INC is currently 8.2% above its 200-period moving average and is in an downward trend. Volatility is Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on AAPL.O and have had this outlook for the last 0 periods.

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