Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Has Apple Inc. (AAPL) Finally Found Its Bottom?

Many people know that Apple Inc. (NASDAQ:AAPL) stock – the most-popular tech stock play among hedge funds we track – has been brutalized the last several months since hitting its all-time high of $705 per share just before the launch of the iPhone 5 and iPad Mini.

Apple Inc. (NASDAQ:AAPL)

Even after solid numbers were reported in the January earnings report – with the highest revenue total for a quarter in the history of the company and the second-highest number among all U.S. corporations – the stock continued its decline. And there as much debate as to if and when the stock would finally hit bottom and began its comeback.

According to an analyst who spoke on CNBC’s “Fast Money” program Friday, at least from a technical perspective, the bottom may have been reached at the $419 mark. Guy Adami of StockMonster addressed the trend line for Apple Inc. (NASDAQ:AAPL) and noted that in recent days the stock has closed above the trend line, which is a signal that a bull market may be coming for the stock.

“The company is facing challenges, and the stock has certainly reflected that,” Adami said. “And since October, the stock has definitely been on a steep downtrend that I think has been broken on the positive side.” Looking at a chart that showed the Apple Inc. (NASDAQ:AAPL)  trend line in a negative direction, Adami noted that the stock seemed to bottom out at $419 about two weeks ago, and in the last couple of trading days the chart showed that Apple’s closing price had posted above the trend line.

“As you look at this chart, you see that support for the stock gets lower with each passing day vis-a-vis the trend line,” Adami said. “But we say all the time, at least you have something to trade against. The sentiment on the stock now has gotten so incredibly negative that I think the stock is so flush now that at least against $420, which is not that big a deal if your reward is north of $500. Maybe for the first time in a while, given that reversal and that trend line that we broke to the up side, … Apple might actually start to look interesting.”

What are your thoughts about Apple Inc. (NASDAQ:AAPL)? Is the stock now on your buy list Let us know in the comments section below.

DISCLOSURE: I own no positions in any stock mentioned.

Please see these related AAPL articles:

Why are EU Antitrust Police Scrutinizing Apple So Much?

Apple, Google and the Future of Wearable Technology

Apple, Adobe and Microsoft Answer Aussie Price Gouging Charges

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.