Apple Inc. (NASDAQ:AAPL) weakness in the iPhone supply chain

Apple Inc. (NASDAQ:AAPL) weakness in the iPhone supply chain

Apple Inc. (NASDAQ:AAPL) weakness in the iPhone supply chain

Jefferies became the latest Wall Street firm to lower expectations for Apple’s stock on weakness in the iPhone supply chain.

“It could get worse before it gets better,” Jefferies analyst Timothy O’Shea said in a note Wednesday. “It appears that [Wall Street] estimates may still be too high.”

O’Shea’s firm lowered its 2019 estimates for iPhone revenue by 3 percent and for Apple’s profit by 4 percent. Jefferies now expects Apple to sell about 72 million iPhones in the first quarter next year and 206 million iPhones over the full year. That is below Wall Street’s expectation for iPhones sales 74 million and 210 million in the respective periods.

Apple shares rose fractionally in premarket trading from Tuesday’s close of $166.07 a share. Jefferies slashed its Apple price target to $225 a share from $265. Despite the cut, Jefferies remains largely positive on the stock due to expected growth in the tech giant’s services business.

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 192.24.

The projected upper bound is: 174.65.

The projected lower bound is: 144.62.

The projected closing price is: 159.63.

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 24 white candles and 26 black candles for a net of 2 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 19.1496. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 7 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 30.57. 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 14 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 -118.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 1 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 12 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -5.180 at 160.890. Volume was 31% above average (neutral) and Bollinger Bands were 11% narrower than normal.

Open High Low Close Volume___
166.000 167.450 159.090 160.890 49,047,296

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 167.79 195.40 194.13
Volatility: 34 48 34
Volume: 43,009,364 41,819,516 32,128,416

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 17.1% below 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 48 periods.

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