Apple Inc. (NASDAQ:AAPL) Up Next: July Earnings

Apple Inc. (NASDAQ:AAPL) Up Next: July Earnings

Apple Inc. (NASDAQ:AAPL) Up Next: July Earnings

The market is trading sharply higher into the opening bell, despite nearly 18 months of fruitless trade negotiations. However, the relief rally could be short lived because it’s also the first day of the third quarter, which Stock Trader’s Almanac notes is the “most bullish first trading day of all 12 months,” advancing 85.7% of the time. Market players will shift their attention to second quarter earnings and the third quarter outlook at the closing bell, raising the odds for a reversal that puts renewed pressure on Apple stock.

Given the cross-currents, can Apple shares trade at new highs in the coming months? Early action this week has triggered the first phase of a test at June resistance above $215, which lies about 18 points below 2018’s all-time high. Accumulation has taken a major hit in the past two months, and Apple will need to find new buyers to replace these departing shareholders. That may not happen without a long-term trade deal, warning bulls that range-bound action might continue into 2020.

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 211.82.

The projected lower bound is: 191.19.

The projected closing price is: 201.50.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 6 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is 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 61.3052. This is not an overbought or oversold reading. The last signal was a sell 5 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 62.75. 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 19 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 137.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 11 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 18 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 3.630 at 201.550. Volume was 4% below average (neutral) and Bollinger Bands were 2% narrower than normal.

Open High Low Close Volume___
203.170 204.490 200.650 201.550 27,316,740

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

Moving Averages: 10-period     50-period     200-period
Close: 198.77 194.06 188.51
Volatility: 24 34 40
Volume: 26,167,516 28,964,544 34,057,564

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 up today (bullish) 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 6.9% 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 moderate flows of volume into AAPL.O (mildly bullish). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 12 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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