Apple Inc. (NASDAQ:AAPL) Premarket Rally

Apple Inc. (NASDAQ:AAPL) Premarket Rally

Apple Inc. (NASDAQ:AAPL) Premarket Rally

Apple earnings rose 7% to $4.18 a share, up 7% vs. a year earlier and 1 cent above fiscal Q1 views. Revenue fell to $84.3 billion, narrowly topping lowered estimates. Services revenue climbed 19% to $10.9 billion.

Apple sees fiscal Q2 revenue at $55 billion to $59 billion, with the $57 billion midpoint well below the consensus for a 4% drop to $58.83 billion.

Apple stock leapt 5.2% in Wednesday’s premarket, as the Apple earnings report and guidance weren’t worse than expected. Shares closed down 1% to 154.68 amid the broader market retreat. Apple stock has rallied somewhat from its post-warning low on Jan. 3 on weak iPhone demand in China, but hasn’t really rebounded either. The relative strength line, which tracks a stock’s performance vs. the S&P 500 index, is barely off lows.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 178.90.

The projected lower bound is: 150.74.

The projected closing price is: 164.82.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 3 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 77.3377. This is not an overbought or oversold reading. 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 58.57. 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 17 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 276.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 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 21 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 10.570 at 165.250. Volume was 100% below average (consolidating) and Bollinger Bands were 35% narrower than normal.

Open High Low Close Volume___
163.250 166.150 160.230 165.250 1,923

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

Moving Averages: 10-period 50-period 200-period
Close: 156.15 163.54 191.54
Volatility: 46 56 39
Volume: 27,443,708 41,736,400 33,359,240

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 gapped up today (bullish) on light volume. Possibility of a Common Gap which usually coincides with a lack of interest in the security. Common Gaps are fairly irrelevent for forecasting purposes. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
APPLE INC is currently 13.7% below 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 3 periods.

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