Apple Inc. (NASDAQ:AAPL) hits all-time high after announcing record holiday App Store sales

Apple Inc. (NASDAQ:AAPL) hits all-time high after announcing record holiday App Store sales

Apple Inc. (NASDAQ:AAPL) hits all-time high after announcing record holiday App Store sales

Apple shares closed at a record high on Wednesday after revealing its App Store customers spent $1.42 billion between Christmas Day and New Year’s Eve.

The tech giant’s stock soared as much as 2.4% on Wednesday after the company announced the record holiday sales figure. App Store developers have now taken in more than $155 billion since the platform launched in 2008, Apple said. A quarter of those earnings came from the past year, the company added.

The holiday-week sales represented a 16% increase over last year’s figure, according to the statement. App Store revenue totaled $386 million on New Year’s Day alone, a 20% jump from the year-ago figure and a record for single-day sales.

The past year was the biggest yet for the company’s increasingly important services sector, Eddy Cue, Apple’s senior vice president of internet software and services, said in the announcement.

“We begin the new decade with incredible momentum and gratitude to our customers who have shown such enthusiasm for all of our Services, and we continue to celebrate the work of the world’s best creators, storytellers, journalists and developers,” Cue said.

The Cupertino, California-based company helped push major stock indexes higher throughout 2019, surging 86% over the 12-month period on strong iPhone 11 demand and rapid growth in its wearables business. The annual gain was Apple’s best since 2009.

Apple’s outperformance in the past year is unlikely to be replicated in 2020, and the stock will “normalize at a higher valuation,” Deutsche Bank analysts Jeriel Ong and Ross Seymore wrote in a Monday note.

“In our view, such a setup bodes poorly for investors who consider what to do with their AAPL holdings from present levels, as the stock is unlikely to come close to repeating last year’s returns,” the analysts wrote.

Apple traded at $303.19 per share when markets closed Tuesday, up roughly 4% year-to-date.

The company has 27 “buy” ratings, 14 “hold” ratings, and seven “sell” ratings from analysts, with a consensus price target of $274.55, according to Bloomberg data.

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 275.35.

The projected upper bound is: 313.03.

The projected lower bound is: 295.62.

The projected closing price is: 304.32.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 34 white candles and 16 black candles for a net of 18 white candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with APPLE INC), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

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 88.1407. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 11 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 79.08. 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 28 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 115.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 11 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 16 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 4.800 at 303.190. Volume was 24% above average (neutral) and Bollinger Bands were 68% wider than normal.

Open     High      Low     Close     Volume___
297.160 304.440 297.156 303.190 33,090,946
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 294.83 270.82 221.92
Volatility: 19 21 28
Volume: 29,451,288 26,694,536 27,106,360

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 36.6% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 97 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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