Apple Inc. (NASDAQ:AAPL) hits a record high

Apple Inc. (NASDAQ:AAPL) hits a record high

Apple Inc. (NASDAQ:AAPL) hits a record high

Apple Inc. smashed first quarter earnings forecast Tuesday, thanks in part to robust demand for its new suite of iPhones, sending shares in the world’s biggest tech company to a fresh all-time high in extended hours trading.

Apple said earnings for the three months ending on December 28, the group’s fiscal first quarter, were pegged at $4.99 per share, up 19.4% from last year and well ahead of the Street consensus forecast of $4.55 per share. Group revenues, Apple said, rose 9% from last year to $91.8 billion, again smashing the analyst consensus of an $88.4 billion tally.

Looking into the company’s March quarter, Apple said it sees revenues in the range of $63 billion to $67 billion, firmly ahead of the Street consensus of $62.4 billion.

“We are thrilled to report Apple’s highest quarterly revenue ever, fueled by strong demand for our iPhone 11 and iPhone 11 Pro models, and all-time records for Services and Wearables,” said CEO Tim Cook. “During the holiday quarter our active installed base of devices grew in each of our geographic segments and has now reached over 1.5 billion.”

“We see this as a powerful testament to the satisfaction, engagement and loyalty of our customers — and a great driver of our growth across the board,” he added.

Apple shares were marked 1.9% higher in extended hours trading immediately following the earnings release to indicate a Wednesday opening bell price of $323.70 each, a move that would extend the stock’s six-month gain to around 54%.

iPhone revenues, Apple said, rose 7.6% to $55.96 billion, reversing a recent trend of declining growth after the launch of three new handsets — the iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max — in September of last year.

Services revenues were 16.9% higher from the same period last year at $12.72 billion. Revenue from the sale of wearable devices such as the AppleWatch and AirPods hit $10 billion, a record high, that topped analysts’ estimates by $500 million, Company gross margins also improved by 40 basis points to 38.4%, Apple said.

Apple’s installed base, a measure of the total number of product units it has in active use, rose to 1.5 billion, the company said, while subscribers to its myriad services hit 480 million, a 33.3% improvement from the same period last year.

Outside of iPhones, Apple noted that Mac sales slipped 3.5% from last year to $7.16 billion, while iPad sales dropped 11.1% to $5.98 billion. China revenues, Apple said, were up 3.1% to $13.58 billion.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 291.71.

The projected upper bound is: 336.12.

The projected lower bound is: 315.03.

The projected closing price is: 325.57.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 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 7 rising windows in the last 50 candles–this makes the current rising window even more bullish.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 60.6982. This is not an overbought or oversold reading. The last signal was a sell 3 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 70.23. This is where it usually tops. 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 2 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 178.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 4 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 6.650 at 324.340. Volume was 93% above average (neutral) and Bollinger Bands were 21% wider than normal.

Open     High      Low     Close     Volume___
324.450 327.850 321.380 324.340 54,149,928
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 316.81 287.52 230.38
Volatility: 29 23 29
Volume: 34,325,696 29,337,206 27,730,014

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 normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
APPLE INC is currently 40.8% above its 200-period moving average and is in an upward 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 moderate flows of volume into AAPL.O (mildly bullish). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 111 periods. Our momentum oscillator is currently indicating that AAPL.O is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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