Apple (NASDAQ:AAPL) Trading at Exceptionally High Levels

Apple (NASDAQ:AAPL) Trading at Exceptionally High Levels

$AAPL #Apple #iPhones #USA #Nasdaq #Stocks #Trading #Markets

Apple
Ticker: NASDAQ:AAPL
Price: 462.25

Company News

The fiscal third quarter was another excellent one for the company, with iPhone, Mac, and iPad sales smashing analyst estimates once again. This came as a pleasant surprise since many expected sales to be weaker owing to the novel coronavirus pandemic.

However, contrary to that, sales shot up the last quarter, as people invested heavily in high-quality machines to power their day to day tasks. I don’t expect that trend to let up in the forthcoming quarters. Plus, Apple is such a strong brand; the products virtually sell themselves now.

Aside from the great quarter, the other piece of news that got everybody’s attention was the four-for-one stock split. In a press release detailing the move, Apple said the step would “make the stock more accessible to a broader base of investors.”

The company wants to make its shares more accessible to retail investors. These announcements usually result in the share prices soaring for the issuers. The same happened with Tesla (NASDAQ:TSLA), and Apple is no different. But the issue is that these stock splits have little to do with the actual operational strength of the company.

Business Summary

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.

Price Performance

Relative Valuation

Technical Indicators

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 391.83.

The projected upper bound is: 492.11.

The projected lower bound is: 437.54.

The projected closing price is: 464.83.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white 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 84.0663. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 6 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 71.69. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 5 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 91. This is not a topping or bottoming area. The last signal was a sell 7 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 up 3.820 at 462.250. Volume was 29% below average (neutral) and Bollinger Bands were 146% wider than normal.

Open     High      Low       Close      Volume
457.410  464.000   456.030   462.250    26,408,384
Technical Outlook
Short Term:        Overbought
Intermediate Term: Bullish
Long Term:         Bullish
Moving Averages: 10-period      50-period      200-period
Close:           452.11         389.10         313.14
Volatility:      39             44             54
Volume:          42,238,984     39,204,720     38,675,964

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 47.6% above its 200-period moving average and is in an upward trend. Volatility is high 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. Our momentum oscillator is currently indicating that AAPL.O is currently in an overbought condition. 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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