$AAPL is on the move (everybody knows this by now), but that does not mean it is a bad investment. Short term, the stock may pull back as low as $104, but long term I see massive potential. $AAPL just crossed and bounced off of all major weekly support levels with volume. I expect some profit taking in the next 2-3 weeks with the release of the iPhone 7. When this pulls back, I think it will be a bargain. I am a buyer on a pullback around $106. Lets look at the chart below and diagnose a few key areas.
1. RSI: Building momentum over the past month and steadily moving higher
2. AAPL is currently 28% below its all time high
3. After a downward weekly channel for the past 12 months, it broke out on volume
4. Bounced off of the 10 and 20 week moving avg, sustaining the move the following week.
5. CMF is building steady momentum, not spiking. Which shows institutional ownership is coming back
6. STRONG financials and TONS of cash.
1. News cycle- This could make or break the stock in the near term. If the new products do not live up to the medias expectations, expect a near term hit.
2. Uncertainty abroad. So much of AAPLs future relies on China and India. With restrictions on stores in China and problems selling in India, AAPL has an uphill battle.
3. Currency issues and the strong dollar will be a problem if global economies continue to struggle.
Overall, I rate AAPL a buy for long term investors. I would wait for a pullback in the $104 range, but even now, it is a bargain.