Apple Inc. (NASDAQ:AAPL) reports earnings Tuesday after the bell

Apple Inc. (NASDAQ:AAPL) reports earnings Tuesday after the bell

Apple Inc. (NASDAQ:AAPL) reports earnings Tuesday after the bell

When Apple reports second-quarter earnings Tuesday after the bell, sales will be down from the same time last year. That’s according to Apple’s own guidance.

Apple has been pummeled in the headlines all year. On January 2, Apple said that its critical holiday quarter revenue would be $7 billion short of its previous projection because iPhone sales had taken a beating in China.

Since then, Apple has made the rare move of cancelling a previously announced announced product, held a strange invite-only event at its campus without any new hardware products and missing critical details on the products it did announce, and most recently, settled a legal war with Qualcomm and paid it a one-time amount analysts believe to be in the billions.

Yet Apple stock keeps going up.

Since Apple pre-announced disappointing first-quarter earnings with shrinking revenue on an annual basis, the stock up over 43%, and last week, several Wall Street analysts covering Apple even upgraded their price targets for the stock.

This streak is coming as it’s become increasingly clear that iPhone unit sales are likely to decline year-over-year — but Apple stopped reporting those numbers late last year. Morgan Stanley is forecasting 42 million iPhones, and last year Apple sold 52 million during the same quarter.

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 210.84.

The projected lower bound is: 199.12.

The projected closing price is: 204.98.

Candlesticks

A black body occurred (because prices closed lower 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 28 white candles and 22 black candles for a net of 6 white candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. The two candles preceding the falling window were black, which makes this pattern even more bearish.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 61.1087. 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 68.83. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 43. 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 0 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -0.980 at 204.300. Volume was 42% below average (neutral) and Bollinger Bands were 17% narrower than normal.

Open High Low Close Volume___
204.900 205.000 202.120 204.300 18,649,102

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

Moving Averages: 10-period 50-period 200-period
Close: 203.31 187.59 191.85
Volatility: 15 20 38
Volume: 22,159,168 26,221,330 33,553,248

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 down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
APPLE INC is currently 6.5% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 63 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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