Apple Inc. (NASDAQ:AAPL) earnings report could be critical

Apple Inc. (NASDAQ:AAPL) earnings report could be critical

Apple Inc. (NASDAQ:AAPL) earnings report could be critical

Dow Jones futures rose modestly early Thursday morning, along with S&P 500 futures and Nasdaq futures, after the stock market rally extended to two sessions. Apple (AAPL) earnings are on tap late Thursday, with the stock market correction near a possible end. As investors look for confirmation that the market rally has staying power, the Apple earnings report could be critical. Apple stock is part of the Dow Jones, S&P 500 index and Nasdaq composite.

Dow Jones futures rose 0.3% vs. fair value. S&P 500 futures climbed 0.3%. Nasdaq 100 futures were up 0.35%. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular session. That’s certainly been true during the stock market correction, which has seen several big swings during daytime and overnight sessions.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 229.91.

The projected lower bound is: 207.96.

The projected closing price is: 218.94.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 3 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 50.6690. This is not an overbought or oversold reading. The last signal was a buy 13 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 49.70. 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 39 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 12. This is not a topping or bottoming area. The last signal was a buy 0 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 17 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 5.560 at 218.860. Volume was 100% below average (consolidating) and Bollinger Bands were 8% narrower than normal.

Open High Low Close Volume___
216.880 220.450 216.620 218.860 4,104

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

Moving Averages: 10-period 50-period 200-period
Close: 217.43 221.18 191.96
Volatility: 38 32 30
Volume: 33,385,888 32,988,674 31,827,356

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 up today (bullish) 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 14.0% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of AAPL.O (mildly bearish). Our trend forecasting oscillators are currently bearish on AAPL.O and have had this outlook for the last 15 periods.

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