Is It Time for Apple Investors To Start Celebrating?
Shares of Apple (NASDAQ:AAPL) have not closed above their 50-day simple moving average since October 4; but they are posed to make that technical breakthrough Friday afternoon, and the move could have positive long-term implications.
That Apple is finally trading above this benchmark level gives analysts a shard of evidence that shares may have finally reached bottomed after their six-month decline, which began after the stock hit its all-time intraday high of $705.07 on September 21. Since investors began selling off last fall, it has followed a downward trendline. But that line, which has tracked Apple’s intermittent rally peaks, was finally broken on Monday when shares rose above its downward trajectory. This movement signaled a “change in market demand for the company’s stock,” said Tom McClellan, editor of The McClellan Market Report, to The Wall Street Journal.
Breaking the trend line showed that the stock was not exactly in an “uptrend,” but that it was also not continuing to drop. And that upward trend has lasted the week; just before Friday’s close, shares were up as much as 1.95 percent at $461.54, a jump that pushed Apple’s stock above the 50-day moving average of $459.28 for the first time since October 29.
This downward trend was of particular concern to investors as the five-and-a-half month fall was the longest period the stock spend below its 50-day moving average in its history, according to Bespoke Investment Group. Previously, the stock’s longest run below that benchmark measurement was a five-month period that ended in May 1996…