Jul 25, 2012

Apple in buy on dips mode



As practice proved it it’s always been good strategy to buy quality blue chip companies on dip. Now is the moment to consider Apple as recent share drop is opportunity to jump in. Falling iPhone sales seem reasonable before debut of the new iPhone5 as customers wait to get the new product. This should not be a constant threat since Apple is a company continuously providing product diversification which protects its leading status. The new iPhone5, the iPad mini and the rumored Apple TV are expected to further strengthen its revenue growth. 

According to the technical analysis the support range appears to be $520-540. That is the area close to triangle support line and projected 200 day moving average, both strong support levels. It is questionable whether investors would let AAPL stock touch those levels thus price under 560 is acceptable. The short term target is $642, the April peak.

Apple price consolidation
Apple price consolidation

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