Apple Inc. (NASDAQ:AAPL) investors may have hit a short-term roadblock

Apple Inc. (NASDAQ:AAPL) investors may have hit a short-term roadblock

Apple Inc. (NASDAQ:AAPL) investors may have hit a short-term roadblock

What was shaping up to be another monster year for Apple investors may have hit a short-term roadblock named the coronavirus, leaving many wondering what they should do with the stock.

Production at key Apple supplier Foxconn’s Zhengzhou plant remains at a general standstill amid the outbreak of the coronavirus. The manufacturing site — which makes the iPhone 11 and is allegedly working on an upcoming new cheaper version — has reportedly only seen about 10% of its workforce return to work on Monday. Foxconn’s other plant in Shenzhen remains closed due to instruction from the Chinese government.

It’s unclear when both plants will be back up and firing on all cylinders. Shares of Apple (AAPL) fell about 1% in early trading Monday.

Apple’s 42 retail stores in China continue to be closed, but are expected to reopen on Feb. 15. An Apple spokesperson didn’t return Yahoo Finance’s request for comment on the store closures and on the stores’ reopening date.

Whatever the case, the lack of production and closed retail stores in China could do a short-term number on Apple’s bottom line and potentially its stock if Wall Street loses confidence in its full-year financial modeling.

Technical Indicators

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 335.71.

The projected lower bound is: 309.68.

The projected closing price is: 322.70.

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 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.

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 84.5968. 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 59.68. 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 7 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 18. This is not a topping or bottoming area. The last signal was a sell 1 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 12 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 1.520 at 321.550. Volume was 4% below average (neutral) and Bollinger Bands were 32% narrower than normal.

Open     High      Low     Close     Volume___
314.180 321.550 313.850 321.550 27,337,216
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 319.12 296.16 234.98
Volatility: 41 27 30
Volume: 36,676,316 31,047,932 28,214,378

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 36.8% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 119 periods.

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