Analyst: Apple Will Bounce From Here
It was a strange 2012 for Apple’s (NASDAQ:AAPL) share price, which gained more than 31 percent in the full calendar year. While the stock rose more than 73 percent between January and mid-September, it dropped just about 25 percent from its peak of $702.10 on September 19 until the end of December.
And this year, again, it has already slipped more than 17 percent. Effectively, the stock has lost almost 36 percent of its value since reaching that record close. All this voluminous trading has gradually brought it to the $450 level — it ended Monday on $449.83 — and in a place where investors can now safely start buying in, technical analyst Carter Worth told CNBC.
“The volume in the case of Apple is almost 10 percent of the float that’s turned over in the last two, three days,” Worth said. “That’s typically cathartic. It’s the opposite of what’s going on in the market. At this point, it’s an epic bounce candidate.”
According to the analyst, the high level of activity in the trade was worth making a note of. “Tactically, something can be overbought, oversold,” he said. “And it’s not so much about oscillators as it is about the crescendo and volume and the sheer magnitude of decline in terms of its persistence. You’re talking about unrelenting, four months down, 38 percent,” he said.