Apple Inc. (NASDAQ:AAPL) Target $265
Apple (AAPL) stock is trending sideways along its 50-day moving average ahead of two potential catalysts this week. The consumer electronics giant is holding a product launch event Tuesday. Apple earnings for its September quarter are due Thursday.
Amid a broad market sell-off, Apple shares dropped 1.9% to close at 212.24 on the stock market today. Apple stock has been trading in a tight range for the past two weeks. It notched a record high of 233.47 on Oct. 3 before the recent tech stock sell-off.
The Cupertino, Calif.-based company is holding a product launch event Tuesday in New York City. Analysts expect Apple to introduce new iPad Pro tablets and Mac computers at the event, which starts at 10 a.m. local time.
The new iPad Pro models are rumored to mirror the design of the latest iPhones. They are expected to scrap the physical home button and use facial-recognition technology for unlocking the device. Apple also is likely to trot out a new Apple Pencil stylus at the event.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 222.88.
The projected lower bound is: 201.39.
The projected closing price is: 212.13.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
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 25 white candles and 25 black candles.
An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.
If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with APPLE INC), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.
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 38.1823. This is not an overbought or oversold reading. The last signal was a buy 11 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 42.15. 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 37 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 -196.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.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 15 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed down -4.060 at 212.240. Volume was 57% above average (neutral) and Bollinger Bands were 12% wider than normal.
Open High Low Close Volume___
219.190 219.690 206.090 212.240 45,935,520
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 218.55 221.14 191.58
Volatility: 37 31 30
Volume: 34,926,416 33,384,340 31,963,800
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 10.8% above 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 13 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.