Wall Street Loves Apple (NASDAQ:AAPL)

Wall Street Loves Apple (NASDAQ:AAPL)

Wall Street Loves Apple (NASDAQ:AAPL)

Without the next dose of bad news on the trade war front, markets are back to squarely focusing on the potential for profit beats when earnings season kicks off later this week with JPMorgan Chase.

With Apple shares down 2% over the past month on fears of slowing smartphone demand, look for Wall Street analysts to try and defend the tech giant’s stock ahead of its earnings report on July 31.

RBC Capital Markets analyst Amit Daryanani was first out of the gate on Sunday, reiterating an outperform rating and $210 price target on Apple. Said Daryanani, “We see several levers that AAPL can use to convert low single digit unit/sales growth to mid-teens EPS growth: 1) Gross margin upside from cost downs, NAND tailwinds & yield efficiencies, 2) Services growth, & 3) Capital allocation.” In other words, don’t give up on Apple.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 197.51.

The projected lower bound is: 184.71.

The projected closing price is: 191.11.

Candlesticks

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 27 white candles and 23 black candles for a net of 4 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 6 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 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 82.5292. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 19 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 59.30. 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 21 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 274.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 8 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 2.610 at 190.580. Volume was 32% below average (neutral) and Bollinger Bands were 41% narrower than normal.

Open High Low Close Volume___
189.500 190.680 189.300 190.580 19,756,634

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

Moving Averages: 10-period 50-period 200-period
Close: 185.64 186.11 173.25
Volatility: 21 23 26
Volume: 20,715,278 26,244,322 30,384,734

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 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 10.0% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 13 periods.

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