Apple Inc. (NASDAQ:AAPL) iPhone production not expected to improve until Q2 2020

Apple Inc. (NASDAQ:AAPL) iPhone production not expected to improve until Q2 2020

Apple Inc. (NASDAQ:AAPL) iPhone production not expected to improve until Q2 2020

The Coronavirus pandemic continues to haunt Apple and the iPhone, the world’s most popular smartphone. While Apple has already acknowledged that the Coronavirus outbreak is impacting the company’s business, things are likely to remain the same for a few more months. Ming-Chi Kuo of TF International Securities tells investors that the iPhone production won’t improve until the second quarter of 2020.

Foxconn, Apple’s manufacturing partner for the iPhone, has seen a big production impact due to the Coronavirus outbreak in China. Although Foxconn has already kick-started the production of iPhones by opening some factories in the country, the contract manufacturer is unable to operate those factories at full capacity. Apple manufactures some iPhone models in India as well as Vietnam.

Not just Foxconn, Apple’s other partners are significantly impacted by the Coronavirus outbreak, which has taken over 3000 deaths around the world. Shipments from iPhone camera lens supplier Genius Electronic Optical has reduced significantly over the last month. Kuo estimated that there is a month of stock remaining, with full production said to start in May at the earliest.

It’s being said that Apple might cancel its upcoming March event, where it is planning to launch the long-awaited “budget” iPhone 9 model alongside the new iPad Pro and On-ear headphones. Apple’s stock is under pressure, thanks to the Coronavirus outbreak.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 291.00.

The projected lower bound is: 255.46.

The projected closing price is: 273.23.

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 29 white candles and 21 black candles for a net of 8 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 17.9868. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 8 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 28.60. 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 20 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 -160.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 10 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 25 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -0.160 at 273.360. Volume was 247% above average (trending) and Bollinger Bands were 116% wider than normal.

Open     High      Low     Close     Volume___
257.260 278.410 256.370 273.360 106,721,232
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 302.67 306.34 241.83
Volatility: 49 37 31
Volume: 48,905,112 35,990,560 28,674,490

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 13.0% above 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 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 6 periods. Our momentum oscillator is currently indicating that AAPL.O is currently in an oversold condition.

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