Apple Inc. (NASDAQ:AAPL) posted its lowest GDP growth in nearly three decades

Apple Inc. (NASDAQ:AAPL) posted its lowest GDP growth in nearly three decades

Apple Inc. (NASDAQ:AAPL) posted its lowest GDP growth in nearly three decades

Amid reports that Apple (NASDAQ: AAPL) is looking to move 15% to 30% of iPhone production out of China due to President Trump’s ongoing trade war, the company is already starting to shift production of other products out of the Middle Kingdom. While Trump’s tariffs are impacting the Chinese economy — the country just posted its lowest GDP growth in nearly three decades — it was always clear that many jobs that might move out of China wouldn’t be coming back to the U.S.

Instead, that work is going to other nearby countries.

Shifting to Vietnam

The Nikkei Asian Review is reporting that Apple is preparing to commence trial production of AirPods — the company’s wildly popular wireless earphones that were updated in March– in neighboring Vietnam. Contract manufacturer Goertek will start testing its production processes at a factory in Vietnam, according to the report. AirPods have historically been assembled in China by Goertek, Inventec, and Luxshare-ICT. The wired EarPods that Apple includes with iPhones have long been produced in Vietnam.

Apple has asked its suppliers to maintain pricing during the trial run, but costs could potentially change once production ramps. Labor costs have been on the rise in China, reducing one of the appeals of manufacturing there. Vietnam offers even lower labor costs than in China, but an influx of production could lead to labor shortages that would drive up those costs.

AirPods have created an entire new category of wearable device — one that Apple has dominated. The wireless earphones grabbed an estimated 60% of the wireless earphone market in the fourth quarter of 2018 and maintained that market share in Q1 of 2019, according to Counterpoint Research. No competing product even comes close to Apple’s volumes.

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 194.19.

The projected upper bound is: 212.57.

The projected lower bound is: 193.93.

The projected closing price is: 203.25.

Candlesticks

A black body occurred (because prices closed lower 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 26 white candles and 24 black candles for a net of 2 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 68.5822. This is not an overbought or oversold reading. The last signal was a sell 0 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 58.63. 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 30 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 64. This is not a topping or bottoming area. The last signal was a sell 0 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 4 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -1.150 at 203.350. Volume was 49% below average (consolidating)(neutral) and Bollinger Bands were 56% narrower than normal.

Open High Low Close Volume___
204.050 205.092 203.270 203.350 14,107,450

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

Moving Averages: 10-period     50-period     200-period
Close: 203.12 193.26 187.53
Volatility: 18 31 40
Volume: 17,815,008 26,538,364 33,038,664

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 8.4% 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 23 periods.

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