Apple Inc. (NASDAQ:AAPL) new credit card with Goldman Sachs could be a disruptive force

Apple Inc. (NASDAQ:AAPL) new credit card with Goldman Sachs could be a disruptive force

Apple Inc. (NASDAQ:AAPL) new credit card with Goldman Sachs could be a disruptive force

Apple’s new credit card with Goldman Sachs could be a disruptive force in more than just the banking industry, according to two analysts at MoffettNathanson.

The technology device giant’s move into banking could enable it to give customers financing for new models of the iPhone, breaking a key relationship point between customers and wireless carriers such as Verizon and AT&T, Craig Moffett and Lisa Ellis wrote in a note to clients.

Wireless carriers often sell expensive new phones to customers in installment plans as part of their monthly service bill. This helps keep customers locked into the carrier until the phone is paid off.

The analysts posed the idea that Apple, with a loyal army of customers who can easily switch carriers, could buy wireless service from telecom companies wholesale for their customers.

“At the very least, owning millions, or tens of millions, of iPhone billing relationships would give Apple an awful lot of leverage,” the analysts wrote.

Apple unveiled the Apple Card earlier this year, tying the credit card into its Apple Pay system as it tries to expand its services business. The card became available to everyone in the United States earlier this week.

Shares of Apple were up more than 1% on Wednesday, rising along with major market indices. The company’s stock has risen about 35% so far this year.

Technical Indicators

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 222.67.

The projected lower bound is: 203.33.

The projected closing price is: 213.00.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 84.3306. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 9 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 59.85. 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 55 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 137.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 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 buy 3 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 2.280 at 212.640. Volume was 22% below average (neutral) and Bollinger Bands were 7% narrower than normal.

Open     High      Low     Close     Volume___
212.990 213.650 211.603 212.640 21,564,748
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 205.82 202.72 185.59
Volatility: 37 30 40
Volume: 28,781,156 25,718,956 32,462,806

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 14.6% 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 1 periods.

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