Is Apple Finally Forming a Bottom?
After falling more than 40 percent from its all-time high of $705 back in September, Apple is showing signs of a comeback.
The stock has gained 7 percent in the past two weeks and on Friday closed above its 50-day moving average for the first time since October.
Friday's close is significant as it may confirm a trend reversal. In the last ten years, the stock was up between 10 and 17 percent, on average, three months after closing above that level.
Despite Apple's positive performance in the past two weeks, the stock has a long way before it reaches its 200-day moving average — it remains a good 18 percent away from that mark.
But as the stock returns to its mean, the gap between the 50- and 200-day moving average may also begin to converge. In fact, the spread between the two has not been this wide since 2008.
(Read More: Apple Chart Looks 'So Bad That It's Good')