JP Morgan gives Apple Inc. (NASDAQ:AAPL) a new buy rating
Apple shares will keep rising even after its big gains this year, according to J.P. Morgan.
The firm initiated coverage of Apple shares with an overweight rating, predicting strong growth for the smartphone maker’s services business.
Apple is “transforming from a hardware company to a services company faster than investors had expected, which is driving financial and valuation upside,” analyst Samik Chatterjee said in a note to clients Thursday entitled “Time for Apple Picking: Initiate OW on Compelling Services Transformation, Ripe Installed Base, Core Capital Deployment.” “We expect increasing appreciation of acceleration in growth, along with greater visibility into earnings and cash flow with increasing mix of Services.
Apple shares are significantly outperforming the market this year. The stock is up 30 percent year to date through Wednesday versus the S&P 500’s 9 percent gain.
Last month Apple became the first publicly traded U.S. company to reach $1 trillion in market value.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 234.25.
The projected lower bound is: 217.03.
The projected closing price is: 225.64.
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 28 white candles and 22 black candles for a net of 6 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 77.7096. This is not an overbought or oversold reading. The last signal was a buy 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 59.64. 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 131.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 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 sell 14 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed up 4.530 at 224.950. Volume was 100% below average (consolidating) and Bollinger Bands were 25% narrower than normal.
Open High Low Close Volume___
223.820 226.440 223.540 224.950 3,516
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 220.44 212.58 186.29
Volatility: 25 26 27
Volume: 32,698,146 30,443,858 30,774,798
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 20.8% above 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 6 periods.