Apple Inc. (NASDAQ:AAPL) set to snap 5-day losing streak as market cap climbs back above $900 billion

Apple Inc. (NASDAQ:AAPL) set to snap 5-day losing streak as market cap climbs back above $900 billion

Apple Inc. (NASDAQ:AAPL) set to snap 5-day losing streak as market cap climbs back above $900 billion

Shares of Apple Inc. rebounded Thursday, as they attempted to snap a five-day skid lower, after Morgan Stanley analyst Katy Huberty said she believes the recent weakness has been an overreaction to sales warnings from smartphone suppliers, which has created a buying opportunity.

The iPhone maker’s stock AAPL, +2.47% surged 2.2% in afternoon trade, after plunging 11% over the past five sessions. The selloff knocked Apple’s market capitalization below $900 billion for the first time in about 6 months, and pushed the stock to the brink of a bear market. At current prices, the Cupertino, Calif-based tech giant’s market value has recovered to $905.9 billion.

Apple shares have shed 9.2% over the past three months, but has still gained 13% year to date. By comparison, the SPDR Technology Select Sector exchange-traded fund XLK, +2.51% has lost 6.4% over the past three months, while the Dow Jones Industrial Average DJIA, +0.83% has edged up 0.2% over the same period.

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 210.75.

The projected upper bound is: 204.78.

The projected lower bound is: 176.78.

The projected closing price is: 190.78.

Candlesticks

A white body occurred (because prices closed higher 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 25 white candles and 25 black 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 11.3281. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 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 35.46. 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 sell 50 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 -123.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 6 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 28 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 4.610 at 191.410. Volume was 40% above average (neutral) and Bollinger Bands were 111% wider than normal.

Open High Low Close Volume___
188.390 191.970 186.900 191.410 46,478,800

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 200.04 216.86 193.58
Volatility: 57 42 33
Volume: 48,782,620 38,397,128 32,591,920

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 1.1% below its 200-period moving average and is in an downward 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 bearish on AAPL.O and have had this outlook for the last 26 periods.

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