Apple Inc. (NASDAQ:AAPL) tock rebounds almost 7% to head for strongest day since 2018

Apple Inc. (NASDAQ:AAPL) tock rebounds almost 7% to head for strongest day since 2018

Apple Inc. (NASDAQ:AAPL) tock rebounds almost 7% to head for strongest day since 2018

Shares in Apple surged 6.9% on Monday, helped by a broad Wall Street rebound and an upgraded rating from an analyst who said the iPhone maker’s stock had become oversold following last week’s rout related to fears about the new coronavirus.

Oppenheimer upgraded its rating on Apple to “outperform” from “perform”, saying the Cupertino, California, company was more prepared than its competitors to absorb the impact of the global health crisis. Apple’s stock tumbled over 16% from its record high on Feb. 12 through Friday.

Monday’s bounce put Apple’s stock on track for its largest one-day gain since December 2018. The company relies heavily on China, where the coronavirus has hit production at its factories and kept consumers away from retail shops.

More broadly, the S&P 500 jumped 2.8% as investors bet that monetary stimulus from central banks would cushion the economic impact of the coronavirus.

Optimism about Apple’s increasing focus on recurring revenues from services including music, videogames and video have pushed its stock up 66% over the past year, even after last week’s selloff. The shares are now trading at about 19 times expected earnings, down from a decade-high PE ratio of over 23 in mid-February, according to Refinitiv Datastream.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 319.94.

The projected lower bound is: 278.42.

The projected closing price is: 299.18.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 29 white candles and 21 black candles for a net of 8 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 42.4077. This is not an overbought or oversold reading. The last signal was a buy 0 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 46.53. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -55. This is not a topping or bottoming area. The last signal was a buy 0 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 26 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 25.450 at 298.810. Volume was 172% above average (trending) and Bollinger Bands were 116% wider than normal.

Open     High      Low     Close     Volume___
282.280 301.440 277.720 298.810 85,349,336
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 300.06 306.71 242.37
Volatility: 78 44 33
Volume: 55,437,200 37,126,032 28,968,514

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 23.3% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 7 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.