Citi cut its Apple Inc. (NASDAQ:AAPL) price target and lowered its iPhone sales estimates due to US-China trade risk

Citi cut its Apple Inc. (NASDAQ:AAPL) price target and lowered its iPhone sales estimates due to US-China trade risk

Citi cut its Apple Inc. (NASDAQ:AAPL) price target and lowered its iPhone sales estimates due to US-China trade risk

Wall Street’s warnings about Apple’s business in China are growing louder. 

The technology giant’s iPhone sales could get cut in half during the second part of this year as a direct result of the escalated trade tensions between the US and China, according to a Sunday report from Citi.

That view prompted the bank to lower its estimates for iPhone sales in China for the remainder of 2019 and to trim its price target for the second time this year. 

The bearish note follows a host of other Wall Street firms’ similarly stark warnings about Apple’s sales in the critical Chinese market. The fears underscore a broader concern about China’s economic slowdown.

While analysts have for months sounded off about Apple facing headwinds in China, the warnings have come quickly in recent weeks as the US-China trade war has escalated.

UBS, for its part, said Apple could indirectly suffer from the US blacklisting Huawei.

“Negotiations between US/China are ongoing and an extension has been granted for some critical items, but we do think a nationalistic movement — similar to the one we saw at the time of the arrest of Huawei’s CFO in November — seems quite probable and would impact iPhone sales,” Shayne Heffernan, CEO and Founder of Heffx wrote.

Apple shares have fallen 11% this month, and trade near a two-month low near $178 a share.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 187.95.

The projected lower bound is: 168.19.

The projected closing price is: 178.07.

Candlesticks

A black body occurred (because prices closed lower 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 26 white candles and 24 black candles for a net of 2 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 10.2480. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 11 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 31.23. 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 15 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 -107.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 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 sell 21 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -0.740 at 178.230. Volume was 5% below average (neutral) and Bollinger Bands were 103% wider than normal.

Open High Low Close Volume___
178.920 180.590 177.910 178.230 27,948,160

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

Moving Averages: 10-period 50-period 200-period
Close: 184.80 195.59 191.70
Volatility: 30 32 40
Volume: 31,390,312 30,380,264 34,562,024

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 7.0% 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 moderate flows of volume out of AAPL.O (mildly bearish). Our trend forecasting oscillators are currently bearish on AAPL.O and have had this outlook for the last 11 periods.

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