Apple Inc. (NASDAQ:AAPL) stock is pacing for a sixth straight weekly win
The shares of Apple Inc. (NASDAQ:AAPL) are modestly higher in early trading, even after a Securities and Exchange Commission (SEC) filing revealed Warren Buffett’s Berkshire Hathaway (BRK.A) trimmed its stake in the tech giant by 1.1% to 249.6 million shares in the fourth quarter, though none of the selling was at the hands of Buffett. Amid broad-market tailwinds, AAPL was last seen up 0.4% at $171.54.
On the charts, Apple stock has rebounded since its Jan. 3 22-month low of $142.00, though this rally has recently stalled out near $175 — home to its Dec. 6 bear gap. Still, the shares are up 8.3% year-to-date, and are pacing toward their sixth straight weekly win, the longest such streak since early 2017.
Digging deeper, now may be a prime time for those looking to trade Apple’s short-term trajectory to do so with options. AAPL’s Schaeffer’s Volatility Index (SVI) of 22% ranks in the 20th annual percentile, meaning short-term options are relatively cheap at the moment, from a volatility perspective.
Plus, the FAANG stock’s Schaeffer’s Volatility Scorecard (SVS) sits at a lofty 95 out of a possible 100. This indicates Apple has handily exceeded options traders’ volatility expectations in the past year — a key to maximizing the benefit of leverage.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 182.71.
The projected lower bound is: 157.56.
The projected closing price is: 170.13.
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 23 white candles and 27 black candles for a net of 4 black candles.
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 41.4520. This is not an overbought or oversold reading. The last signal was a sell 5 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 59.21. 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 29 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 34. This is not a topping or bottoming area. The last signal was a sell 6 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 33 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed down -0.380 at 170.420. Volume was 39% below average (neutral) and Bollinger Bands were 1% wider than normal.
Open High Low Close Volume___
171.250 171.700 169.750 170.420 24,626,814
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 171.27 161.06 191.65
Volatility: 24 51 39
Volume: 26,362,818 39,650,292 33,212,742
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 11.1% below its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 15 periods.
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