What the China tariffs mean for Apple Inc (NASDAQ:AAPL)

What the China tariffs mean for Apple Inc (NASDAQ:AAPL)

What the China tariffs mean for Apple Inc (NASDAQ:AAPL)

It looks like Apple Opens a New Window. is, at least for the time being, dodging a bullet in the trade war between the U.S. and China Opens a New Window..

The U.S. Trade Representative on Tuesday announced the 10 percent tariff Opens a New Window. that was set to hit $300 billion worth of Chinese goods on Sept 1. will be delayed until Dec. 15 for products like cell phones and laptops, likely including the iPhone and MacBook. Apple’s stock soared on the news.

The announcement is good news for Apple, which in June warned Opens a New Window. such a tax would result in a reduction of its contribution to the U.S. economy and weigh on its global competitiveness. Apple had sought a tariff exemption for iPhones and MacBooks, but Trump rebuffed its attempt.

The tariffs going into effect on Sept 1. would’ve had big implications for Apple, according to Wedbush Managing Director Dan Ives.

“With ~40% of iPhones sold globally coming out of the US heading into an important trifecta smartphone launch, at this point we DO NOT believe Apple will pass these tariff costs to US consumers on the new smartphones hitting the market this September,” he said, adding that the iPhone maker would’ve taken a 50 cent to 55 cent a share hit for its full-year 2020 earnings as a result of absorbing the tariffs.

If the tariffs do go into effect at a later date, Apple could look to produce at least part of the iPhone outside of China, according to Ives.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 219.26.

The projected lower bound is: 200.11.

The projected closing price is: 209.68.

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 5 white candles and 5 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 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 77.5269. This is not an overbought or oversold reading. The last signal was a buy 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 57.19. 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 49 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 36. This is not a topping or bottoming area. The last signal was a buy 3 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 8.490 at 208.970. Volume was 73% above average (neutral) and Bollinger Bands were 15% narrower than normal.

Open     High      Low     Close     Volume___
201.020 212.140 200.830 208.970 47,539,784
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 202.87 200.33 185.88
Volatility: 51 31 40
Volume: 40,739,448 25,737,860 32,913,960

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 12.4% 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 7 periods.

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