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Apple Stock Finding a Bottom?

Tuesday, 19 Mar 2013 | 6:08 PM ET
Apple Stock Finding a Bottom?
Shares of Apple appear to have broken a downward trend line, making the stock interesting, StockMonster's Guy Adami says.

Shares of Apple appear to have broken a downward trend line, making the stock interesting once again, StockMonster's Guy Adami said Tuesday.

Looking at the stock's price chart on March 3 and March 4, Adami noted on CNBC's "Fast Money" that shares appeared to have bottomed out at $419.

"I think the stock is flush to a point now, at least against $420, which in percentage terms is not that big a deal if your reward is north of $500," he said.

Given that the stock has broken above the steadily downward trendline, Adami said that Apple shares could be a "buy" again soon – "especially if you believe that this tape is not on the way down, that this tape is still in ascension."

"For the first time in a while, Apple might actually look interesting," he added.

Dan Nathan of RiskReversal weighed in on the technicals.

"I think from a technical basis it had this pop above that downtrend line. It was pretty severe," he said. "You know where it stopped today? It stopped right at the 50-day moving average, which it hasn't really touched since last October."

Nathan also said that he was wary of high expectations on the chance that Apple announces an increased dividend, a factor that was already being priced in.

"I don't think you want to chase it at $460," he said. "You want to let it come to you."

Trader disclosure: On March 19, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Dan Nathan is long AAPL APR/MAY 460 CALL SPREAD; Dan Nathan is long MS APR 22/21 PUT SPREAD; Dan Nathan is long AMZN APR 240/200/160 PUT FLY; Keith McCullough is long TLT; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is long DIS; Karen Finerman is long M; Karen Finerman is short SPY; Karen Finerman is short MDX; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU.

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