Apple Inc. (NASDAQ:AAPL) Stock Price and the Credit Card Business

Apple Inc. (NASDAQ:AAPL) Stock Price and the Credit Card Business

Apple Inc. (NASDAQ:AAPL) Stock Price and the Credit Card Business

Apple had a terrible fiscal first quarter due to weak China demand. That was largely due to the sky-high prices on the latest iPhones, though CEO Tim Cook also signaled trade tensions. Apple stock crashed Jan. 3 after the company’s Q1 warning. Shares have recovered somewhat, but Apple’s relative strength line hasn’t rebounded much. The RS line tracks a stock’s progress vs. the S&P 500 index.

There are millions of loyal fans who will love to have an Apple credit card. But this only represents a minority of the user base. Consider the company’s payments business. Despite its convenience of being loaded on the iPhone, the activation rate has been only about 25% or so in the U.S. and the annual revenues are under $400 million, according to Loup Ventures.

In light of this, why wouldn’t a credit card have a similar growth path? Unless there is something unique, it probably will be more of a niche play.

When it comes to Apple stock, the two main drivers are the iPhone and services. But as seen in the past few quarters, these segments have been a mixed bag. The iPhone — which represents a majority of revenues — appears to be a mature business and the growth from services has not been enough to compensate for this.

And unfortunately, a credit card will likely be just a rounding error when it comes to the top line.

Overall, the bias in prices is: Sideways.

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

By the way, prices are vulnerable to a correction towards 173.59.

The projected upper bound is: 186.79.

The projected lower bound is: 163.59.

The projected closing price is: 175.19.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white 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 65.0000. This is not an overbought or oversold reading. The last signal was a sell 14 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 63.39. 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 38 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 95. This is not a topping or bottoming area. The last signal was a sell 1 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 1 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 1.820 at 174.970. Volume was 34% below average (neutral) and Bollinger Bands were 71% narrower than normal.

Open High Low Close Volume___
174.280 175.150 172.890 174.970 25,886,168

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 172.90 161.68 191.13
Volatility: 12 48 38
Volume: 22,675,736 35,921,920 32,594,122

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 8.5% below 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 volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 24 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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