Apple Inc. (NASDAQ:AAPL) innovation outlook a concern for investors?

Apple Inc. (NASDAQ:AAPL) innovation outlook a concern for investors?

Apple Inc. (NASDAQ:AAPL) innovation outlook a concern for investors?

Since peaking at a year-high in early May, Appleshares have shed close to 14 percent of those gains – largely because of renewed U.S.-China trade tensions.

On Monday, shares of the iPhone-maker closed at $183.09, far from the 2019 high of $211.75, after HSBC released a note to investors in which they reduced their outlook for Apple, citing renewed China economic growth risks and tariffs. Apple shares climbed slightly higher on Tuesday.

Trump’s 25 percent tariff hike on Chinese goods could pose two threats to Apple, HSBC global head of consumer and retail research Erwan Rambourg wrote: first, Apple may increase the price of its iPhones if tariffs affect its products which could hurt demand.

“Apple could increase prices, with dire consequences on demand given the evidence of price elasticity (late 2018 iPhone launches have already been seen as too pricey by consumers) and lengthening smartphone upgrade cycle,” Rambourg said in the note.

And second, consumers in the Chinese market may shift to smartphone substitutes produced by competitors like Huawei or Xiaomi, favoring local brands over functionality. China accounts for about 17 percent of Apple sales and profits.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 196.53.

The projected lower bound is: 176.98.

The projected closing price is: 186.75.

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 28 white candles and 22 black candles for a net of 6 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 4 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 44.9329. This is not an overbought or oversold reading. The last signal was a buy 7 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 38.45. 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 11 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 -74. 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 3.510 at 186.600. Volume was 3% below average (neutral) and Bollinger Bands were 73% wider than normal.

Open High Low Close Volume___
185.220 188.000 184.700 186.600 28,364,848

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

Moving Averages: 10-period 50-period 200-period
Close: 191.49 195.85 192.26
Volatility: 43 32 39
Volume: 35,584,944 30,543,890 34,507,248

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 2.9% below 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 7 periods.

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