Apple Inc. (NASDAQ:AAPL) closes all stores outside Greater China for 2 weeks
Apple Inc said Saturday it’s closing its hundreds of retail stores outside of Greater China until March 27 and is moving to remote work in order to help reduce the spread of coronavirus.
In a letter posted on Apple’s website, Chief Executive Officer Tim Cook said that the “most effective way to minimize risk of the virus’s transmission is to reduce density and maximize social distance,” which led to the decision to temporarily close the stores and move corporate employees outside of Greater China to work remotely.
Apple has nearly 460 locations across the world outside of China, including about 270 stores in the U.S. Apple had earlier shuttered its stores in Italy and Spain as the world deals with the Covid-19 pandemic.
“Frankly it’s good that they do it,” President Donald Trump said at a press conference Saturday. “We want to keep people away for a little while.”
Apple’s 42 stores in mainland China, and about 10 across Hong Kong and Taiwan, remain open. Apple closed all its mainland China stores in February and finished reopening them on Friday amid signs that the country is starting to contain the outbreak.
The store closures is an extension of Apple’s efforts to cope with the outbreak. Cook sent a memo to employees about a week ago offering staff at most of its global offices the ability to work from home.
At the time, he called the outbreak an “unprecedented event” and a “challenging moment.”
As a U.S.-based technology company that builds the vast majority of its products via a China supply chain, Apple has been uniquely impacted by the coronavirus. It’s supply chain had been set back by weeks with factory closures, and products like the iPhone and iPad Pro have seen constraints in meeting orders.
On Friday, Apple said it would hold its annual conference for software developers online, scrapping a June gathering that normally brings thousands of people together in San Jose, California.
Apple was one of the first companies to disclose the virus’s impact on its financials, saying last month that it will no longer meet its March quarter guidance range of US$63 billion to US$67 billion. It didn’t say how its two week closure of most stores would further impact revenue.
The stock has declined 5.3% this year, compared with the Nasdaq Composite Index’s 12% slump.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 292.67.
The projected upper bound is: 308.63.
The projected lower bound is: 246.68.
The projected closing price is: 277.66.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 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 36.1854. This is not an overbought or oversold reading. The last signal was a sell 5 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 45.43. 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 9 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 -72. This is not a topping or bottoming area. The last signal was a buy 0 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 35 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed up 29.740 at 277.970. Volume was 158% above average (trending) and Bollinger Bands were 127% wider than normal.
Open High Low Close Volume___
264.890 279.920 252.950 277.970 92,683,032
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 282.60 305.81 246.78
Volatility: 133 70 42
Volume: 72,785,544 44,361,832 30,784,494
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 12.6% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 16 periods.