An innovative powerhouse with one of the strongest brand names globally, Apple continues to refresh its product lines as seen with the iPhone 12, Silicon Macbook, iPad Air and more. In the long term, its services segment could be a key growth driver with an expanding product mix to leverage its massive install base of over a billion devices globally. Not only are revenues increasing, but so is profitability with the highly scalable nature of its services portfolio leading to margin expansions in the future. Despite being the great company, that Apple is, if there’s one thing that 2020 taught us, it is to expect the unexpected.
While we forecast an earnings beat for Q4FY20, on the 29th of October, the market may be unfazed given the crushing stock market reception of the iPhone 12 launch. While our valuations show 19% upside for Apple stock based on FY2021 earnings, as well as technical analysis indicating bullishness, we are coming into election week (2nd of November) with numerous risks in the market surrounding the economic slowdown, made worse by political uncertainty delaying the much needed stimulus.
Depending on the outcome of the election, China may soon officially take action against US companies by blacklisting Apple. Add to that the second wave of COVID sweeping the world, we do not feel it is the right time to purchase more Apple shares given the various risks present. We feel investors should maintain their current investment positions in Apple, and re-evaluate this after the election week, when we should have a clearer picture of the political landscape in the US. At the moment, we rate Apple as Hold.
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.
The projected upper bound is: 126.62.
The projected lower bound is: 106.66.
The projected closing price is: 116.64.
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 26 white candles and 24 black candles for a net of 2 white candles.
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 36.8136. This is not an overbought or oversold reading. The last signal was a buy 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 50.59. 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 37 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 -54. This is not a topping or bottoming area. The last signal was a sell 8 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 4 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed up 1.550 at 116.600. Volume was 100% below average (consolidating) and Bollinger Bands were 44% narrower than normal.
Open High Low Close Volume 115.490 117.280 114.540 116.600 126,702
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 117.37 117.47 90.21 Volatility: 21 53 60 Volume: 101,056,232 164,295,888 168,903,392
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 29.3% 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 9 periods.