Apple Inc. (NASDAQ:AAPL) top tech stock under pressure

Apple Inc. (NASDAQ:AAPL) top tech stock under pressure

Apple Inc. (NASDAQ:AAPL) top tech stock under pressure

Another top tech stock that’s been under pressure since the Sino-U.S. trade hostilities escalated is Apple (NASDAQ:AAPL). In a letter to the U.S. government this month, Apple emphasized the significant risks to its business if Trump imposes 25% tariffs on a new slate of products imported from China.

The iPhone manufacturing giant employs an estimated two million people in the Apple supply chain, in addition to a similar number of tech workers busy on the development of Apple apps. The company designs and sells most of its products in the U.S., but imports them from China after assembly.

The latest truce between the U.S. and China will again raise hopes that one of the largest U.S. tech stocks will be able to avoid disruption in its massive network of suppliers in China without forcing the company to move its production to other countries.

Apple shares closed at $197.92 on Friday, down about 1%. However, the stock is up more than 10% in the past one month.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 208.02.

The projected lower bound is: 187.61.

The projected closing price is: 197.82.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 9 falling windows in the last 50 candles–this makes the current falling window even more bearish.

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 63.4721. This is not an overbought or oversold reading. The last signal was a sell 4 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 57.74. 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 18 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 34. This is not a topping or bottoming area. The last signal was a sell 10 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 buy 17 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -1.820 at 197.920. Volume was 10% above average (neutral) and Bollinger Bands were 21% wider than normal.

Open High Low Close Volume___
198.680 199.495 197.050 197.920 31,110,642

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close: 198.01 194.11 188.61
Volatility: 22 34 40
Volume: 24,902,758 28,902,124 34,167,376

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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
APPLE INC is currently 4.9% 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 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 11 periods.

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