Apple Inc. (NASDAQ:AAPL) estimates remain at the lower end of Apple’s guidance range

Apple Inc. (NASDAQ:AAPL) estimates remain at the lower end of Apple’s guidance range

Apple Inc. (NASDAQ:AAPL) estimates remain at the lower end of Apple’s guidance range

Weaker demand for Apple products as well as a lackluster reception for the iPhone XR outside the United States will prevent shares from advancing over the next year, according to Goldman Sachs.

“In addition to weakness in demand for Apple’s products in China and other emerging markets it also looks like the balance of price and features in the iPhone XR may not have been well-received,” Goldman analyst Rod Hall said in a note Tuesday.

“Our estimates remain at the lower end of Apple’s guidance range at this point as we believe the company likely included this more negative scenario in its provided range,” Hall said.

Apple’s decision to no longer break out iPhone sales data, meanwhile, is being heralded as a signal that the phone maker may be expecting softer iPhone volumes in the future. The company has attempted to remedy the slowing volumes with pricier phones, but even those efforts appear to be reaching their limit, Goldman said.

“Apple’s success with iPhone X demand this summer and then a relatively healthy start to the XS cycle this fall suggested to us that pricing power was still intact,” Hall wrote. “However, the laboratory of the market now points to Apple being at the limit of their price premium for the iPhone. In our experience with mobile phones, when pricing power is lost, consumer technology companies tend to either lose margins or market share or both.”

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 204.38.

The projected upper bound is: 185.50.

The projected lower bound is: 156.92.

The projected closing price is: 171.21.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is 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 4.7420. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 4 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 26.80. This is where it usually bottoms. 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 55 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 -143.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 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 33 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -4.490 at 172.290. Volume was 32% below average (neutral) and Bollinger Bands were 152% wider than normal.

Open High Low Close Volume___
174.940 176.595 172.100 172.290 23,623,972

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 187.45 212.75 194.13
Volatility: 46 44 33
Volume: 44,108,648 38,348,172 31,931,156

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 11.3% below 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 31 periods. Our momentum oscillator is currently indicating that AAPL.O is currently in an oversold condition.

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