Since hitting a high of 133 in mid March, Apple has traded in a consolidation pattern for the last month. However, one can see from the chart that the rising blue line of the 50 day moving average is lifting the stock. Will this be enough to break this mini- range that formed after the recent high? And more importantly for investors out there - is this a time to buy Apple?
I do not know if this range will break to the upside. Apple is still far away from its 200 day moving average, much too far for me to advise buying at this point because stocks always tend to revert to the means of the moving averages. That said - and I've said it before, Apple is a special case. Due to the sheer amount of cash on its balance sheet - any investment in this company is safe in the short/intermediate term due to its ability to buy back its own stock.
The dividend isn't much however and I don't see crazy amount of upside, so don't rush into Apple here.
HOLD is my rating.
I do not know if this range will break to the upside. Apple is still far away from its 200 day moving average, much too far for me to advise buying at this point because stocks always tend to revert to the means of the moving averages. That said - and I've said it before, Apple is a special case. Due to the sheer amount of cash on its balance sheet - any investment in this company is safe in the short/intermediate term due to its ability to buy back its own stock.
The dividend isn't much however and I don't see crazy amount of upside, so don't rush into Apple here.
HOLD is my rating.