After breaching the $1T market cap threshold, being bulled relentlessly by Warren Buffet and appearing nearly invincible to any market sell-off over the past year, AAPL has very quickly seemed to lose the wind in its sails. Such is the case for momentum stocks when bear markets take over. Seemingly overnight, AAPL has gone from a growth AND value play to a company riddled with slowing growth concerns, product bans abroad and opaque accounting of its sales (after they decided to stop giving iPhone sales numbers in the last quarter).
The current headlines aside, the bull case remains for Apple considering their P/E ratio, their free cash flow and their 'stickiness' in many customer's daily lives (including myself). This now $715B market cap company isn't going anywhere.
Technically, it's also running into very long-term trendline support! Given the recent volatility, it's very possible that the trendline in the chart above will act as a magnet and we could see it get to that $139-142 level as early as next week. I would expect a strong bounce off of this level (especially if it happens sooner rather than later). My upside target for a bounce would be in the $170-175 range.
I think you can buy AAPL between $139 and $142 shooting for $170-175, using a stop at $135.
The current headlines aside, the bull case remains for Apple considering their P/E ratio, their free cash flow and their 'stickiness' in many customer's daily lives (including myself). This now $715B market cap company isn't going anywhere.
Technically, it's also running into very long-term trendline support! Given the recent volatility, it's very possible that the trendline in the chart above will act as a magnet and we could see it get to that $139-142 level as early as next week. I would expect a strong bounce off of this level (especially if it happens sooner rather than later). My upside target for a bounce would be in the $170-175 range.
I think you can buy AAPL between $139 and $142 shooting for $170-175, using a stop at $135.