Apple Inc. (NASDAQ:AAPL) seems to be bucking the bears
The stock has been trading well above Wall Street’s average price target of $197.7, settling at $207 on Tuesday after gaining more than 1%. Still, Wall Street analysts are the most bearish they have been on the stock in years, with 16 buy ratings, 14 hold ratings and 3 sell ratings, according to FactSet.
Mark Tepper, president and CEO of Strategic Wealth Partners, says this might be about to change.
“Quite frankly, the Street has been offsides on this stock. This stock is typically a consensus buy, but sentiment on the Street hasn’t been this bearish in years,” he said Tuesday on CNBC’s “Trading Nation.” “As soon as the analysts come around and they rerate this thing, you’re going to see sentiment flip and the stock’s going to pop.”
That’ll take a few concessions on the analysts’ part, specifically when it comes to Apple’s growing service revenue stream, Tepper said.
”[Apple has] executed very well on transitioning from unit sales over to services, and services are all recurring revenue and high margin, so I think the analysts are finally beginning to wake up and they’re applying different multiples to these different business lines,” he said. “And, obviously, the deal with Qualcomm ensures that Apple’s going to have that 5G phone sooner than later. So that removes a huge risk and should rerate the stock even higher, and all these things are huge tailwinds for the stock price. ”
But once Wall Street tilts more heavily in favor of the iPhone maker, Tepper said investors would do well to back off.
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 191.22.
The projected upper bound is: 213.67.
The projected lower bound is: 202.16.
The projected closing price is: 207.91.
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 29 white candles and 21 black candles for a net of 8 white candles.
An inverted hammer occurred. If this occurs during a downtrend it implies a reversal. Look for a confirmation of the reversal on the bar.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
A shooting star occurred (a shooting star has a small real body near the bottom of the candle and a long upper shadow). During an uptrend(which appears to be the case with APPLE INC) the long upper shadow indicates that the bears are gaining control and a top may occur.
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.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 92.3047. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 8 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 79.22. 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 sell 21 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 165.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 8 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 1 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed down -0.320 at 207.160. Volume was 100% below average (consolidating) and Bollinger Bands were 5% narrower than normal.
Open High Low Close Volume___
207.360 208.480 207.050 207.160 2,129
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 202.31 186.22 191.70
Volatility: 14 20 38
Volume: 20,945,700 26,022,190 33,458,074
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.
APPLE INC is currently 8.1% 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 very strong flows of volume into AAPL.O (bullish). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 61 periods. Our momentum oscillator is currently indicating that AAPL.O is currently in an overbought condition.