Apple Inc. (NASDAQ:AAPL) Stock Is Still Headed to $245
Apple (NASDAQ:AAPL) is still arguably the best company on the planet. They have accomplished amazing things in spite of a lot of criticism of Tim Cook’s leadership. I personally don’t believe that he’s the best person for the job, but that doesn’t stop me from betting bullish on the Apple stock every chance I get.
In early June, I wrote about an opportunity to go long AAPL and it delivered a 20% rally and $30 per share upside. And more recently I was lucky to profit from smaller rallies. So check emotions at the door and let charts and fundamentals be the guides for the AAPL stock.
The outcome of this week’s market action is binary because of today’s Fed decision on rates. This also will also temporarily affect the AAPL but eventually the fundamentals will retake the reins. The Fed won’t change AAPL’s 2019 thesis.
Fundamentally, it is easy to argue for owning AAPL stock. Wall Street systemically undervalues it. AAPL sells at 19 trailing P/E ratio which is about four times smaller than Amazon (NASDAQ:AMZN) and 40% cheaper than Facebook (NASDAQ:FB).
However, this alone is not reason to expect higher prices because short of a miracle, investors will continue to undervalue the Apple stock. But technically there is reason to expect much higher prices soon. It is on a path to reaching $245 per share. This would be a natural extension from its rally that started last Christmas.
Equity Markets are Headed to New Highs
Today’s fed announcement might cause volatility, but my personal overall market thesis is that we will make new all-time highs soon. I expect fireworks this week, but if we dip there will be buyers to pick the pieces up and run higher. I still believe that there are too many bears who are too comfortable being short when markets are at all-time highs and when the global central banks are dedicated to inflating the economies.
They say do not fight the fed and do not fight the tape. So I don’t see the reason to short stocks when both of these are true. So when we make new highs it will be a big bang where we will move a hundred points in the S&P 500 quickly. Because when the last stops trigger, buying will beget buying and I want to be long Apple stock into that event.
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 206.19.
The projected upper bound is: 234.19.
The projected lower bound is: 212.21.
The projected closing price is: 223.20.
A white body occurred (because prices closed higher 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 26 white candles and 24 black candles for a net of 2 white candles.
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 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 52.5813. This is not an overbought or oversold reading. The last signal was a sell 3 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 64.40. 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 74 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 88. This is not a topping or bottoming area. The last signal was a sell 3 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 9 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed up 2.070 at 222.770. Volume was 6% below average (neutral) and Bollinger Bands were 14% wider than normal.
Open High Low Close Volume___
221.060 222.850 219.440 222.770 25,643,092
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 218.62 208.21 187.76
Volatility: 24 34 37
Volume: 28,386,392 27,236,340 30,657,380
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 18.6% above its 200-period moving average and is in an upward trend. Volatility is low 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 20 periods.