Will the US ban on WeChat sink Apple (NASDAQ:AAPL) in China?

Will the US ban on WeChat sink Apple (NASDAQ:AAPL) in China?

$AAPL #Apple #USA #WeChat #Nasdaq #Stocks #Trading #Markets

Apple
Ticker: NASDAQ:AAPL
Price: $452.04

Company News

Will the US ban on WeChat sink Apple in China? Washington’s decision to ban the Chinese superapp could force smartphone users in China to choose between the iPhone and their favourite app, according to this article in the Nikkei Asian Review.

It is not clear if the US executive order that bans WeChat from September 20 extends to Apple users in China as well as in the US. Some US lawyers think it does, because companies such as Apple fall under the classification of “US persons” to which the ban refers. Other lawyers argue it refers only to US users of WeChat.

Key implications

If the ban does extend to users of iPhones in China, Apple would be highly vulnerable. The company relies on China for close to 20 per cent of its worldwide revenues.

Phoenix Weekly, a media outlet in China, ran an online poll that asked people if they would change their phone if they could no longer access WeChat. Among 88,000 respondents nearly 80,000 said they would choose the messaging app, while fewer than 6,000 said they would stick with their iPhones.

Upshot

If the US ban applies to Apple in China, it could be a huge blow. WeChat is used by 1.1bn people and is an essential part of daily life. The US commerce department has 45 days to explain the scope of the ban and how it will be enforced.

Business Summary

Apple Inc. designs, manufactures and markets mobile communication and media devices, personal computers and portable digital music players.

The Company sells a range of related software, services, accessories, networking solutions, and third-party digital content and applications.

The Company’s segments include the Americas, Europe, Greater China, Japan and Rest of Asia Pacific.

The Americas segment includes both North and South America. The Europe segment includes European countries, India, the Middle East and Africa.

The Greater China segment includes China, Hong Kong and Taiwan.

The Rest of Asia Pacific segment includes Australia and the Asian countries not included in the Company’s other operating segments.

Its products and services include iPhone, iPad, Mac, iPod, Apple Watch, Apple TV, a portfolio of consumer and professional software applications, iPhone OS (iOS), OS X and watchOS operating systems, iCloud, Apple Pay and a range of accessory, service and support offerings.

Price Performance

Relative Valuation

Technical Indicators

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 384.50.

The projected upper bound is: 481.96.

The projected lower bound is: 427.27.

The projected closing price is: 454.61.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 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 51.7685. This is not an overbought or oversold reading. The last signal was a sell 2 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 69.67. 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 1 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 69. This is not a topping or bottoming area. The last signal was a sell 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 buy 8 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 14.540 at 452.040. Volume was 11% above average (neutral) and Bollinger Bands were 137% wider than normal.

Open     High       Low        Close      Volume
441.990  453.100    441.190    452.040    41,486,204
Technical Outlook
Short Term:        Overbought
Intermediate Term: Bullish
Long Term:         Bullish
Moving Averages: 10-period     50-period      200-period
Close:           436.50        378.55         308.86
Volatility:      65            45             55
Volume:          52,552,156    38,325,288     38,553,780

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 46.4% above its 200-period moving average and is in an upward 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 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 8 periods.

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