Weak Apple Inc. (NASDAQ:AAPL) iPhone demand appears to be the primary driver of the company’s difficulties

Weak Apple Inc. (NASDAQ:AAPL) iPhone demand appears to be the primary driver of the company’s difficulties

Weak Apple Inc. (NASDAQ:AAPL) iPhone demand appears to be the primary driver of the company’s difficulties

Weak iPhone demand appears to be the primary driver of the company’s difficulties. Revenue from the product declined 15% year-over-year in Q1, per the company’s 10-Q filing. The reduction of the company’s guidance ahead of its December quarter results sent AAPL stock plunging. Longer replacement cycles, weakness in China, and a potentially imminent ceiling on price increases all suggest iPhone revenues may well have peaked.

Apple needs a new growth driver. And it’s common knowledge that the company’s Services business is supposed to be that driver. CEO Tim Cook has frequently discussed the company’s long-term goals for the Services business. It’s the only way for Apple to offset the “commoditization” problem facing the iPhone and a number of its other hardware problems.

And as the Wall Street Journal reported this week, Apple is repositioning itself for a more services-based future. The key question for Apple stock is whether AAPL will be rejuvenated by its Services business .

Overall, the bias in prices is: Sideways.

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

The projected upper bound is: 184.08.

The projected lower bound is: 159.87.

The projected closing price is: 171.98.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black 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 52.2881. This is not an overbought or oversold reading. The last signal was a sell 7 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 61.60. 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 31 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 72. This is not a topping or bottoming area. The last signal was a sell 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 sell 1 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 1.100 at 172.030. Volume was 35% below average (neutral) and Bollinger Bands were 7% narrower than normal.

Open High Low Close Volume___
171.190 173.320 170.990 172.030 26,114,362

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

Moving Averages: 10-period 50-period 200-period
Close: 171.03 160.89 191.60
Volatility: 14 50 38
Volume: 24,111,816 38,863,180 32,935,140

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 10.2% below its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into AAPL.O (mildly bullish). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 17 periods.

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