Apple Inc. (NASDAQ:AAPL) can save time and increase consumers’ choices by moving production to the U.S.

Apple Inc. (NASDAQ:AAPL) can save time and increase consumers’ choices by moving production to the U.S.

Apple Inc. (NASDAQ:AAPL) can save time and increase consumers’ choices by moving production to the U.S.

Last week, the Nikkei Asian Review reported that Apple (NASDAQ:AAPL) had asked its contract manufacturers to produce 30% of the iPhone’s components outside of China.

The trade war is wreaking havoc on corporate supply chains, which is terrible for AAPL stock. But more importantly,  the bigger problem is that the request highlights globalization’s glaring weakness.

Globalization Is Time-Consuming

The first cracks in globalization’s strong appeal came several years ago when retailers realized that buying products six months to a year ahead of time made absolutely no sense because  customers want to choose from many options.

Nor does it make much sense to ship clothes from China to America, given the greenhouse gas emissions created by the world’s shipping industry. The sector, which moves 90% of the world’s trade, emits as much greenhouse gas as Germany does.

Whether we’re talking about a t-shirt or an iPhone, it’s got to be better from both a time and greenhouse gas emissions perspective to make products closer to end-user markets.

Now, with the U.S./China trade war causing significant disruption to the global supply chain, Apple is looking for ways to mitigate the damage  to Apple stock orice from an extended battle between the world’s two largest economies.

However, it’s clear that the trade war is only a symptom of the actual underlying problem that globalization doesn’t work , at least not in the way that it was intended to.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 205.66.

The projected lower bound is: 185.35.

The projected closing price is: 195.50.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 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 51.6097. This is not an overbought or oversold reading. The last signal was a sell 1 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 55.79. 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 buy 15 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 41. This is not a topping or bottoming area. 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 buy 14 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -3.010 at 195.570. Volume was 25% below average (neutral) and Bollinger Bands were 45% wider than normal.

Open High Low Close Volume___
198.430 199.260 195.290 195.570 21,070,334

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

Moving Averages: 10-period     50-period     200-period
Close: 196.37 194.19 188.94
Volatility: 19 33 40
Volume: 22,963,898 28,783,362 34,341,412

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 3.5% above its 200-period moving average and is in an upward trend. Volatility is low 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 8 periods.

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