Apple Inc. (NASDAQ:AAPL) It’s The Process, Not The Outcome

Apple Inc. (NASDAQ:AAPL) It’s The Process, Not The Outcome

Apple Inc. (NASDAQ:AAPL) It’s The Process, Not The Outcome

At 17.8x, AAPL’s P/E is higher than its industry peers (17.6x). This implies that investors are overvaluing each dollar of AAPL’s earnings. Therefore, according to this analysis, AAPL is an over-priced stock.

A few caveats

However, before you rush out to sell your AAPL shares, it is important to note that this conclusion is based on two key assumptions. The first is that our peer group actually contains companies that are similar to AAPL. If this isn’t the case, the difference in P/E could be due to some other factors. For example, if you are inadvertently comparing riskier firms with AAPL, then AAPL’s P/E would naturally be higher than its peers since investors would reward its lower risk with a higher price.

The other possibility is if you were accidentally comparing lower growth firms with AAPL. In this case, AAPL’s P/E would be higher since investors would also reward AAPL’s higher growth with a higher price. The second assumption that must hold true is that the stocks we are comparing AAPL to are fairly valued by the market. If this assumption does not hold true, AAPL’s higher P/E ratio may be because firms in our peer group are being undervalued by the market.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 192.88.

The projected lower bound is: 178.56.

The projected closing price is: 185.72.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

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

If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with APPLE INC), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) 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 30.0907. This is not an overbought or oversold reading. 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 43.92. 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 10 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 -117.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 9 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 8 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -1.040 at 185.460. Volume was 17% below average (neutral) and Bollinger Bands were 51% narrower than normal.

Open High Low Close Volume___
187.250 188.350 184.940 185.460 25,711,898

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

Moving Averages: 10-period 50-period 200-period
Close: 189.19 182.79 171.82
Volatility: 13 26 26
Volume: 26,524,792 28,433,348 31,189,472

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 7.9% above its 200-period moving average and is in an downward trend. Volatility is 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 2 periods.

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