Apple Inc. (NASDAQ:AAPL) looks strong in China ahead of earnings

Apple Inc. (NASDAQ:AAPL) looks strong in China ahead of earnings

Apple Inc. (NASDAQ:AAPL) looks strong in China ahead of earnings

Apple Inc. got a big vote of confidence from UBS, but it may not be enough to power shares toward yet another record high.

UBS analyst Timothy Arcuri raised his Apple AAPL, +0.16% price target to $275 from $230 on Thursday, with the new target representing one of the highest on Wall Street. He’s upbeat about iPhone demand heading into Apple’s September-quarter earnings report Tuesday and expects that the stock can keep grinding higher over the long term.

Apple shares are off 0.3% in Thursday trading.

“On a relative basis, we acknowledge that things probably won’t get a whole lot better than this and Sept/Oct have typically been the worst time to buy in recent years for relative performance, but as investors roll this sort of multiple forward to include more of the big C20/21 period, we think the stock can still move higher – especially as the ‘tail effect’ from it still being such a big global underweight might last for some time,” he wrote.

For the latest quarter in particular, Arcuri said that third-data points look encouraging in China and suggest that Apple showed better seasonal strength there in September than it did a year ago. “More importantly, there has been growth in two of the last three months following declines for two and a half years,” he wrote.

In general, Arcuri sees iPhone 11 estimates as being too low, writing that despite the lack of high-profile new features, Apple looks well positioned to drive upgrades given a relatively high portion of iPhone 7 and iPhone 7+ devices that are still in use.

“Build plans for 2019 iPhones have been muted, but recent data suggests a slight uptick given higher demand,” he wrote.

Technical Indicators

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 220.96.

The projected upper bound is: 253.70.

The projected lower bound is: 235.09.

The projected closing price is: 244.40.

Candlesticks

A black body occurred (because prices closed lower 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 24 white candles and 25 black candles for a net of 1 black 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 87.9576. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 6 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 74.16. This is where it usually tops. 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 buy 100 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 129.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 buy 13 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 0.400 at 243.580. Volume was 33% below average (neutral) and Bollinger Bands were 58% wider than normal.

Open     High      Low     Close     Volume___
244.510 244.800 241.805 243.580 17,916,256
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 238.07 220.62 196.46
Volatility: 18 27 30
Volume: 23,328,122 26,695,438 27,839,714

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 24.0% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into AAPL.O (mildly bullish). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 46 periods. Our momentum oscillator is currently indicating that AAPL.O is currently in an overbought condition.

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