Evercore ISI initiating Apple Inc. (NASDAQ:AAPL) as ‘outperform’

Evercore ISI initiating Apple Inc. (NASDAQ:AAPL) as ‘outperform’

Evercore ISI initiating Apple Inc. (NASDAQ:AAPL) as ‘outperform’

Evercore said that despite the various issues swirling around the company, it expects the stock to “grind higher.”

“We are initiating on AAPL w/ an Outperform rating as we see several catalysts that should enable the stock to grind higher from current levels. While we understand iPhone units (and sales) will remain muted through FY20 (5G launch) the narrative has and continues to shift towards services and a higher mix of recurring revenue for AAPL. Key levers for upside include: a) services growing double-digits with potential acceleration given new revenue streams, b) gross margins inflecting higher for the remainder of the year given easing commodity costs and better leverage, c) cap allocation enables 2-4% share reduction, and d) non iPhone hardware sales inflect higher and have better margins. ”

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 188.07.

The projected upper bound is: 194.98.

The projected lower bound is: 175.40.

The projected closing price is: 185.19.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 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 92.6798. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 3 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 48.21. 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 buy 2 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 68. This is not a topping or bottoming area. The last signal was a buy 2 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 1 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 2.680 at 185.220. Volume was 30% below average (neutral) and Bollinger Bands were 19% wider than normal.

Open High Low Close Volume___
183.080 185.470 182.149 185.220 20,623,068

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

Moving Averages: 10-period 50-period 200-period
Close: 178.83 194.13 190.58
Volatility: 31 32 40
Volume: 28,669,626 28,830,554 34,617,156

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 2.8% 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 volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on AAPL.O and have had this outlook for the last 18 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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