Apple stock rose Tuesday on a fresh news report about the tech giant’s long-rumoured electric vehicle. However, many Wall Street analysts remain skeptical that the company will build a so-called Apple Car. Instead, Apple (AAPL) might be developing technology to license to automakers, they said.
Apple is moving ahead with a self-driving electric car and is targeting 2024 as the year it produces a passenger vehicle.
The effort includes “breakthrough battery technology,” Reuters said. Its battery design could “radically” reduce the cost of batteries and increase the vehicle’s range, the report said.
Apple has been developing an automobile or related technologies since 2014 under the code name Project Titan.
Apple Has Key Ingredients To Make Car
However, Morgan Stanley analysts think an Apple Car is possible.
“Apple possesses the key ingredients that we believe are critical to be successful in the future auto industry,” Morgan Stanley analysts said in a note to clients. Those ingredients include access to capital, the ability to attract and retain top talent and proven hardware design expertise.
Morgan Stanley rates Apple stock as overweight, or buy, with a price target of 144.
Meanwhile, Loup Ventures managing partners Gene Munster and Andrew Murphy said Apple’s final approach to the auto industry is yet to be determined.
They said in a blog post that they previously described “Apple’s go-to-market strategy in AV (autonomous vehicles) as a coin toss between licensing autonomous technology to existing automakers and building an Apple-branded car.”
Apple Inc. designs, manufactures and markets mobile communication and media devices, personal computers and portable digital music players.
The Company sells a range of related software, services, accessories, networking solutions, and third-party digital content and applications.
The Company’s segments include the Americas, Europe, Greater China, Japan and Rest of Asia Pacific.
The Americas segment includes both North and South America. The Europe segment includes European countries, India, the Middle East and Africa.
The Greater China segment includes China, Hong Kong and Taiwan.
The Rest of Asia Pacific segment includes Australia and the Asian countries not included in the Company’s other operating segments.
Its products and services include iPhone, iPad, Mac, iPod, Apple Watch, Apple TV, a portfolio of consumer and professional software applications, iPhone OS (iOS), OS X and watchOS operating systems, iCloud, Apple Pay and a range of accessory, service and support offerings.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 118.66.
The projected upper bound is: 139.21.
The projected lower bound is: 124.85.
The projected closing price is: 132.03.
A white body occurred (because prices closed higher 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 28 white candles and 22 black candles for a net of 6 white 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 4 rising windows in the last 50 candles–this makes the current rising window even more bullish.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 72.9375. 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 69.04. 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 sell 76 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 15 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed up 3.650 at 131.880. Volume was 100% below average (consolidating) and Bollinger Bands were 10% narrower than normal.
Open High Low Close Volume 131.610 134.405 129.650 131.880 30,016
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 126.04 119.32 98.50 Volatility: 38 39 56 Volume: 102,638,080 110,775,464 156,489,280
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.
APPLE INC gapped up today (bullish) on light volume. Possibility of a Common Gap which usually coincides with a lack of interest in the security. Common Gaps are fairly irrelevent for forecasting purposes. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
APPLE INC is currently 33.9% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 15 periods.