Apple Inc. (NASDAQ:AAPL) Pulls Back About 1% From Intra-day Highs
Shares of Apple Inc.(NASDAQ:AAPL) pulled back by about 1% to $568.70 after hitting session high of $574.47. The stock has been showing see saw trading sessions over the past few trading days in absence of any trigger.
The recent trend signals that the stock may continue to consolidate over the next few trading weeks as the stock has fallen about $50 from its recent intra-day high of $618 just after the earnings day, when the stock soared about 9%.
Analysts at Wall Street are bullish on the stock considering the upcoming iPhone 5, which is expected to launch later this year. The recent pull back didn’t invite analysts to cut their rating or price target on the stock.
RBC Capital Markets technical analyst Robert Sluymer today offers that the stock is “at an attractive risk/reward trading level given it has corrected to support near 550 just above “trend” defined by its 75-dma (553).
Sluymer also notes that “Short-term/daily momentum indicators are ‘positively diverging’ (higher lows) as AAPL consolidates above 550.”
Moreover, “AAPL’s relative performance versus the S&P 500 (and Russell Large-cap Growth) is at 7-day highs which is a noteworthy positive divergence with real price.”
“Trading support is between this week’s lows at (558.73) and the April 24th lows (555) followed by the 75-dma at 552.90 which we recommend using as a stop loss, risk control level.”
Sluymer’s assessment stands in contrast to a report yesterday by Merlin Securities LLC’s Rich Bensingor, who opined that support for the shares might be all the way down at $527.
Amidst fears that iPhone revenues could decline in coming months due to longer carrier upgrade eligibility periods and reduced carrier subsidies, Morgan Stanley (NYSE:MS) analyst Katy Huberty indicated in a note on Friday that Apple Inc. (NASDAQ:AAPL) may see increased revenue growth from the addition of new carriers.