Apple: Why $116-$120 will soon be history

“Apple has just made a significant move by closing sharply over its 50-day moving average (currently 112.24) for the first time in three months on September 20, and rising steadily from there,” J. M. Manness writes for Seeking Alpha. “It is not the norm for Seeking Alpha to post technical analysis, and I will not dwell too long on this, but rather show how this fact reflects a real change in attitude in the market, and what this means for the stock price.”

“In February, April and July, Apple made attempts to rise above $133, each time falling back, until in August it fell back into the $110 – $116 range, only breaking out of this last Friday (Oct. 23). To my mind there were two major drivers of this (as well as several smaller issues),” Manness writes. “These were: Chinese economic fears [and] “Apple can not continue like this” syndrome. It’s the ending of these two factors that is now driving Apple stock prices higher, resulting in the recent technical indicator.”

“There has been a major disconnect here, and a good showing with the earnings release on Tuesday (Oct. 27) will make a point that is undeniable: the stock is grossly undervalued,” Manness writes. “And this should send the price back up well past its previous high of $134 and into new record territory. If that should happen, then the current price will be history, and it’s unlikely we will see it again.”

Read more in the full article here.

MacDailyNews Take: From your lips to Mr. Market’s ears.


  1. I fear the iPhone 6S may not sell as well as the 6 over the next 11 months.

    Unless the next Watch kicks special a§§ (and especially if they keep the design for two years) it may not sell as well over its first 12 months as the Watch 1.

    TV looks like a hard sell.

    Music is stumbling.

    It’s hard to see major growth here unless you extrapolate in emerging markets. Sales will be great, but growth? Surely it’s slowing.

    Meanwhile Microsoft is getting its act together little by little and Google is continuing to excite.

    So the stock is floundering for obvious reasons. (A major motion picture depicting sJobs as unkind doesn’t help either, fictional as it is.)

      1. It’s up to investors to choose which stocks they think are worth the money. If you put money in, I think you expect to get money back. That isn’t happening with Apple unless you count the dividends. Maybe investors don’t like paying for what is thought to be a doomed company. Everyone has too many doubts about Apple’s future. When Wall Street thinks that even Microsoft has a better future than Apple, I’d say loyal Apple shareholders should be somewhat concerned. I’ve gotten a lot from Apple over the years and probably shouldn’t complain. I’m just puzzled why Microsoft is suddenly making all these gains and Apple isn’t. I would think Windows 10 being paid for should be a worry more than slowing iPhone sales but everyone seems frightened Apple won’t sell any more iPhones every quarter which just seems stupid to me.

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