Investors are falling for Apple Inc. (NASDAQ:AAPL) again
Shares of the tech giant were slightly higher in Tuesday’s premarket, a day after soaring more than 3 percent on Bank of America’s upgrade of the stock to buy. Analyst Wamsi Mohan said the recent “pullback presents opportunity” to buy the stock, citing factors like “modest re-acceleration in services” and “growth across healthcare, wearables and increasing services penetration” as reasons to own Apple .
The stock has been highly volatile over the last 12 months, sinking to a multiyear low in early January after the company cut its quarterly revenue forecast for the first time in more than 15 years.
The stock has bounced about 26 percent from that low, although it’s still trading in a bear market with shares roughly 23 percent from the October all-time high.
Apple trades at 14.8 times next 12 months’ expected earnings, according to estimates from FactSet.
Oppenheimer’s Ari Wald argues that it might take Apple a little bit of time to regain its prior high, but that in the long run it’s heading back in that direction. As the economy slows, Wald said, investors will favor high-growth names — especially in technology.
“The key long-term positive for us are the top-down tailwinds from what we see as a broadly and relatively strong technology sector. We continue to think that a premium gets placed on these high-growth companies in a low-growth world,” he said on “Trading Nation.”
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 174.06.
The projected upper bound is: 191.59.
The projected lower bound is: 171.23.
The projected closing price is: 181.41.
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 28 white candles and 22 black candles for a net of 6 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 5 rising windows in the last 50 candles–this makes the current rising window even more bullish.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 78.0284. This is not an overbought or oversold reading. The last signal was a sell 21 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 69.34. 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 45 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 253.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 5 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 buy 0 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed up 2.010 at 180.910. Volume was 15% below average (neutral) and Bollinger Bands were 62% narrower than normal.
Open High Low Close Volume___
180.000 182.670 179.370 180.910 32,467,584
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 175.41 164.41 190.73
Volatility: 24 42 38
Volume: 26,319,532 31,701,586 32,839,564
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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
APPLE INC is currently 5.1% below its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 31 periods.
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