Apple Inc. (NASDAQ:AAPL) likely to offer a lower-priced 5G model in 2020

Apple Inc. (NASDAQ:AAPL) likely to offer a lower-priced 5G model in 2020

Apple Inc. (NASDAQ:AAPL) likely to offer a lower-priced 5G model in 2020

The coming iPhone new product cycle may be a non-event, but rising conviction in a strong 2020 lineup has one analyst feeling bullish about Apple Inc.’s prospects.

Raymond James analyst Chris Caso upgraded Apple shares AAPL, +1.14%  to outperform from market perform on Thursday, writing of his growing optimism for the 5G iPhone models that the company is expected to launch next year. Caso now believes that Apple will offer 5G models across the price spectrum, helping to provide a “compelling” reason for upgrades at a time when Apple is increasingly selling “legacy” devices.

“With an aging installed base, we think a reasonably priced 5G phone will be a very compelling upgrade,” Caso said in his note to clients. “While there’s some question about the customer utility for 5G, we think there’s enough sweat and money being spent by the carriers on this technology that they will convince customers of the utility.”

Caso was initially concerned that Apple might not be able to get 5G iPhones launched next year—around the same time as its peers—due to its supplier choices, but that view “changed when Apple settled with Qualcomm and decided to use its modem in the 2020 iPhone,” wrote Caso, who set a $250 price target on Apple shares.

He said it’s “at least a reasonable assumption for a cycle including a 5G phone at a mainstream, ~$750 price point,” which could help reignite Apple’s iPhone sales. The stock is up 0.3% in premarket trading.

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 194.26.

The projected upper bound is: 214.78.

The projected lower bound is: 196.65.

The projected closing price is: 205.72.

Candlesticks

A white body occurred (because prices closed higher than they opened).
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 27 white candles and 23 black candles for a net of 4 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 62.5195. This is not an overbought or oversold reading. The last signal was a sell 1 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 62.31. 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 buy 31 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 102.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. 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 5 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 2.310 at 205.660. Volume was 33% below average (neutral) and Bollinger Bands were 56% narrower than normal.

Open High Low Close Volume___
204.000 205.880 203.700 205.660 18,582,160

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close: 203.25 193.32 187.43
Volatility: 18 30 40
Volume: 18,537,018 26,134,734 33,016,928

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 9.7% above its 200-period moving average and is in an upward trend. Volatility is low 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 24 periods. 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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