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.
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.
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