Apple Inc. (NASDAQ:AAPL) what’s in store for 2019

Apple Inc. (NASDAQ:AAPL) what’s in store for 2019

Apple Inc. (NASDAQ:AAPL) what’s in store for 2019

With 2018 looking like a lost year for Apple (AAPL) stock, investors are wondering what’s in store for 2019. At least one analyst thinks Apple stock won’t return to favor until late in the year.

Loup Ventures managing partner Gene Munster thinks Apple stock will be in the doghouse until late 2019 when investors begin to accept Apple more as a services company than a hardware company. Apple might not return to its $1 trillion valuation milestone in the new year, Munster said.

“I don’t know if we’ll get back to it in 2019, but in 2020 and beyond we will get back to it and go measurably higher,” Munster said. “It’s going to take four quarters for investors to get their bearings around this new reporting, which gets us to the September-October time frame next year.”

Apple stock has taken a “one-two punch” from slowing iPhone sales and the company’s lack of transparency, Wedbush Securities analyst Daniel Ives said. Investors are now wondering if the iPhone growth story is dead, he added.

Apple miscalculated pricing on the iPhone XR and may need to get more aggressive on promotions and marketing, Ives said. On the plus side, Apple’s installed base of 750 million active iPhones is fairly loyal, he said. It’s only a matter of time before they upgrade to new iPhones.

“The retention rate has been pretty strong,” Ives said. “It’s not like the average iPhone customer is going to Samsung and Android.”

The transition to 5G cellular networks could provide a major upgrade opportunity for Apple, said Munster.

“5G rollout in earnest in the U.S. isn’t probably until 2020 or 2021,” he said. “Apple won’t be first to the party, but they will arrive in plenty of time to capitalize on 5G.”

Apple will want to make sure the new networks are reliable and the components are working properly before it dives into 5G handsets.

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 194.71.

The projected upper bound is: 177.55.

The projected lower bound is: 147.77.

The projected closing price is: 162.66.

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 36.3095. This is not an overbought or oversold reading. The last signal was a buy 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 31.07. 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 12 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 -116.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 3 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 10 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -1.540 at 163.940. Volume was 20% above average (neutral) and Bollinger Bands were 4% wider than normal.

Open High Low Close Volume___
165.450 168.350 162.730 163.940 44,287,920

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

Moving Averages: 10-period 50-period 200-period
Close: 171.24 197.82 194.27
Volatility: 44 47 33
Volume: 42,934,708 41,426,628 31,974,920

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 15.6% 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 46 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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