Although U.S. stocks ended higher Thursday, Apple shares slipped amid an ongoing rumor of slowing production of its new iPhone 4s. But are concerns about Apple’s stock overblown?
Trader Brian Kelly of Shelter Capital still likes Apple . Some investors are worried about the stock, but he’s looking for two catalysts in the next six months: 1) enterprise spending, and 2) 4G conversion happening next year.
Guy Adami of Drakon Capital agreed with Kelly, saying he won’t get too concerned until Apple’s stock falls below the $360 level. Until then, he’s a buyer of AAPL.
Joe Terranova, on the other hand, thinks investors should reduce their position because Apple is technically pulling back. The morning after the technology company reported earnings, Terranova said the stock gapped open lower. There is still a price gap between the $409 and $415 level, he continued, and the stock can’t get through resistance of $409.
With Apple’s stock having broken through its 50-day moving average and other key levels, Terranova thinks it’s only a matter of time before it drops through its 200-day moving average of $363. Should the market get negative macroeconomic news on Friday, trader Tim Seymour thinks Apple’s stock could retest $363. Should Apple fall below that level, Seymour said investors should avoid it all together.
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