Apple Inc. (NASDAQ:AAPL) Weak Demand in China for iPhones

Apple Inc. (NASDAQ:AAPL) Weak Demand in China for iPhones

Apple Inc. (NASDAQ:AAPL) Weak Demand in China for iPhones

Apple Inc. was little changed on Monday as investors looked past a report its smartphone shipments plummeted in China in the final quarter of 2018, suggesting that issue, a major headwind over the past several months, is priced into the stock for now.

The stock briefly dipped as much as 0.6 percent before bouncing back, but is still underperforming the technology sector, which rose 0.3 percent. If Apple ends the day lower, it will be the first time this year it’s suffered a three-day decline.

According to research firm IDC, Apple’s smartphone shipments in China fell an estimated 20 percent in the fourth quarter, outpacing a 9.7 percent contraction in the Chinese domestic market. Demand for the iPhone was hurt by a slowing economy, higher prices, and longer replacement cycles.

Investors have long been concerned about the demand prospects for Apple’s flagship product, particularly in China, suggesting the trend found in the IDC report could already be priced into the stock. Shares of Apple are down more than 26 percent from record levels, though they’ve gained nearly 20 percent from a low in early January.

According to Bloomberg data, the iPhone accounted for more than 60 percent of Apple’s 2018 revenue, while it derived almost 20 percent of its revenue from China.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 182.52.

The projected lower bound is: 156.15.

The projected closing price is: 169.33.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black 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 36.4832. This is not an overbought or oversold reading. The last signal was a sell 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 58.74. 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 25 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 54. This is not a topping or bottoming area. The last signal was a sell 2 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 29 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -0.980 at 169.430. Volume was 48% below average (neutral) and Bollinger Bands were 11% wider than normal.

Open High Low Close Volume___
171.050 171.210 169.250 169.430 20,993,424

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

Moving Averages: 10-period 50-period 200-period
Close: 168.33 161.89 191.54
Volatility: 44 53 39
Volume: 34,849,668 41,188,804 33,554,640

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 11.5% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 11 periods.

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