Apple (NASDAQ:AAPL) shares dropped 2.6% on Monday after a $115.98 close. Since the company held its delayed iPhone 12 event on Oct. 13, AAPL stock has slid 6.8% — despite the fact the company delivered on virtually everything that had been expected. At this point, Apple is trading at mid-August levels. It’s struggling to recover to its $134.18 close just before the September tech stock selloff. Does this lackluster performance make an investment in Apple now a smart move? Or, are we at the point where the shine is off the $2 trillion company?
Apple stopped breaking out iPhone unit sales last year, and that means the company has been mum on iPhone 12 pre-order numbers. However, analysts with web analytics can get a pretty good picture of what’s happening. And the news is good for Apple.
Ming-Chi Kuo of TF International Securities tracked iPhone 12 pre-order sales, which kicked off last Friday. In the first 24 hours, Kuo says Apple sold up to 2 million iPhone 12 units. In comparison, last year the company reportedly sold 800,000 iPhone 11 units in that same initial 24 hours of pre-orders.
Strong demand during pre-orders don’t necessarily translate to equally strong sales when the new iPhones are available in stores. However, the early data is encouraging.
This goes without saying, but smart Apple investors are looking beyond the iPhone for long-term growth. Yes, the iPhone still accounts for the lion’s share of Apple revenue. But as CEO Tim Cook pointed out when the company reported its latest quarterly earnings, the company is seeing double-digit growth in Services revenue. In addition to the iPhone and Services like Apple TV+ and Apple Music, there is also the iPad, the Mac, the Apple Watch, AirPods, the Apple TV, HomePod smart speakers, Beats headphones and a flourishing accessory business.
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.
By the way, prices are vulnerable to a correction towards 112.69.
The projected upper bound is: 127.11.
The projected lower bound is: 106.93.
The projected closing price is: 117.02.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
An inverted hammer occurred. If this occurs during a downtrend it implies a reversal. Look for a confirmation of the reversal on the bar.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
A shooting star occurred (a shooting star has a small real body near the bottom of the candle and a long upper shadow). During an uptrend(which appears to be the case with APPLE INC) the long upper shadow indicates that the bears are gaining control and a top may occur.
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 14.9254. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 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 50.56. 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 33 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 -9. This is not a topping or bottoming area. The last signal was a sell 4 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 sell 0 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed down -0.640 at 116.870. Volume was 45% below average (neutral) and Bollinger Bands were 29% narrower than normal.
Open High Low Close Volume 116.670 118.705 116.450 116.870 89,945,984
Technical Outlook Short Term: Oversold Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 118.87 117.37 89.45 Volatility: 46 54 60 Volume: 140,056,560 171,588,192 170,249,728
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 is currently 30.7% above its 200-period moving average and is in an upward trend. Volatility is low 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 5 periods.
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