Today, Apple announced improvements to several of its products and operating systems. Although, to the frustration of some, no upgrades to its iMac line were released. Hopes of a surprise Apple television set announcement were not met. While Apple is unquestionably a great company, what’s going on with its stock price? Are Apple shares range-bound?
We have previously commented that Apple’s stock price was due for a correction and might be flat for a while. About five weeks ago, its stock price broke below its 50-day moving average. Today, it tested getting above its 50-day moving average again but failed. If it doesn’t break above within the next few weeks, it will clearly have established a resistance level and it could be in for further price deterioration.
So, where’s the bottom? Given Apple’s quick move from $425 on up, it’s hard to point to a definitive support level. However, extending the upper limit of the channel it seems to have created in the middle of 2011, one hits the stock price’s 200-day moving average. That’s around $475. That would be a good entry point if you are looking to buy.
Our firm has no long or short positions in Apple. Some of our clients have long positions but no short positions.