Apple Inc. (NASDAQ:AAPL) Targt $226
Apple’s (AAPL) services business is “taking the growth baton from iPhone,” Morgan Stanley said Thursday. The investment bank raised its price target on Apple stock after studying the growth potential for the company’s broad services business.
Morgan Stanley analyst Katy Huberty reiterated her overweight rating on Apple stock and upped her price target to 253 from 226. Apple stock dipped 0.4% to close at 208.49 on the stock market today.
“We think the market underestimates both growth and value impact of Apple’s Services business,” she said in a report to clients. “With a maturing, more engaged iOS user base and broadening portfolio of Services, we believe Services represents the key growth driver for Apple over the next 5 years.”
Huberty believes Apple can sustain annual growth of at least 20% over the next five years. Wall Street analyst estimates have Apple’s services business slowing to a growth rate of the midteens by fiscal 2020. Apple’s fiscal 2019 started on Sept. 30.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 214.24.
The projected upper bound is: 221.32.
The projected lower bound is: 195.08.
The projected closing price is: 208.20.
A black body occurred (because prices closed lower 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 25 white candles and 25 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 43.3762. This is not an overbought or oversold reading. The last signal was a buy 1 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 43.76. 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 45 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 -60. This is not a topping or bottoming area. The last signal was a buy 1 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 23 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed down -1.460 at 208.490. Volume was 20% below average (neutral) and Bollinger Bands were 30% wider than normal.
Open High Low Close Volume___
209.980 210.120 206.750 208.490 25,362,636
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 211.42 220.10 192.94
Volatility: 54 38 32
Volume: 47,469,824 37,346,792 32,471,308
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 8.1% 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 21 periods.