Home US Stocks Apple Inc. (NASDAQ:AAPL) Apple Inc. (NASDAQ:AAPL) shares surpassed $300 amid predictions for a robust holiday...

Apple Inc. (NASDAQ:AAPL) shares surpassed $300 amid predictions for a robust holiday quarter

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Apple Inc. (NASDAQ:AAPL) shares surpassed $300 amid predictions for a robust holiday quarter

Apple Inc. shares surpassed $300 amid predictions for a robust holiday quarter, demand for wearables such as AirPods and planned services including streaming TV.

Shares of the iPhone maker rose 2.3% to close at a record $300.35, topping the $300 mark for the first time on a split-adjusted basis. Thursday’s gain was in stark contrast to the dismal start Apple had in 2019 when it cut its sales forecast for the first time in almost two decades exactly a year ago. Despite the setback, Apple went on to outperform all other megacap technology stocks in 2019 with a gain of 86%, its best year in a decade.

Investors are increasingly optimistic about Apple’s user base of nearly 1.5 billion consumers and its ability to leverage auxiliary products like the Apple Watch, AirPods and Apple TV and major hardware upgrade cycles for the iPhone and iPad every few years. The company has also promoted its user base as a key to generating recurring revenue from services like iCloud storage subscriptions, streaming service Apple TV+, Apple Music and AppleCare.

Apple is expected to release its next generation of iPhones that are capable of operating on 5G networks in the fall. The company is also expected to release a new low-cost phone in the first half of the year.

Apple shares traded well above $300 when the company completed a 7-for-1 stock split in 2014.

Technical Indicators

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 269.35.

The projected upper bound is: 309.97.

The projected lower bound is: 293.13.

The projected closing price is: 301.55.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 33 white candles and 17 black candles for a net of 16 white 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 5 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is 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 92.5518. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 7 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 84.58. 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 24 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 168.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 7 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 12 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 6.700 at 300.350. Volume was 29% above average (neutral) and Bollinger Bands were 70% wider than normal.

Open     High      Low     Close     Volume___
296.240 300.600 295.190 300.350 33,911,864
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 287.27 266.31 219.74
Volatility: 17 20 29
Volume: 31,462,802 25,727,634 27,311,736

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 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 36.7% 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 93 periods. Our momentum oscillator is currently indicating that AAPL.O is currently in an overbought condition.

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