There’s ‘low risk’ of Apple Inc. (NASDAQ:AAPL) disappointing with its September forecast

There’s ‘low risk’ of Apple Inc. (NASDAQ:AAPL) disappointing with its September forecast

There’s ‘low risk’ of Apple Inc. (NASDAQ:AAPL) disappointing with its September forecast

Apple Inc. shares are rising in Monday trading after an analyst at Morgan Stanley praised the “attractive” setup heading into the company’s earnings report next Tuesday.

Morgan Stanley’s Katy Huberty raised her price target on Apple’s stock AAPL, +2.29% to $247 from $231, writing that the smartphone giant faces only a “low risk” of disappointing with its September outlook given a low bar on Wall Street. She also pointed to improving China data points, which could have positively impacted Apple’s soon-to-be-reported June numbers.

“Investor sentiment remains negative despite improving iPhone and services data points,” Huberty said in her note to clients. She expects that Apple could show an acceleration in services revenue for the first time since March 2018, “a key catalyst for regaining investor confidence in the services narrative,” she said. Huberty rates the stock overweight.

Shares were up 1.7% in Monday morning trading even as the Dow Jones Industrial Average DJIA, +0.07% gave up an early advance. The stock is up 31% so far this year, as the Dow has risen 16%.

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 194.68.

The projected upper bound is: 216.67.

The projected lower bound is: 198.03.

The projected closing price is: 207.35.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 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 66.1765. This is not an overbought or oversold reading. The last signal was a sell 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 62.20. 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 33 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 134.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 1 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 7 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 4.630 at 207.220. Volume was 18% below average (neutral) and Bollinger Bands were 53% narrower than normal.

Open High Low Close Volume___
203.650 207.230 203.610 207.220 22,277,932

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close: 203.81 193.44 187.19
Volatility: 20 31 40
Volume: 18,597,328 25,773,916 32,991,020

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 10.7% above its 200-period moving average and is in an upward trend. Volatility is 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 26 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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