Apple Inc. (NASDAQ:AAPL) stock closed at $467.71, Down: 5.44%, investors can buy the stock at surprisingly $435 - $450 with a strict stop loss below $410 or $388, Avauncer.com reports.
According to the stock report, Apple Inc. (NASDAQ:AAPL) stock opened surprisingly lower in Wednesday and stayed low until the day's low.
Apple Inc. (NASDAQ:AAPL) stocks got terribly low because of reports confirming that the company had a USB downgrade and that the company had not announced its deal with China Mobile.
"For the last two sessions the volume ran high at 26 & 32 million, way higher than the average volume of 12 million. The price action formed small Turning Top candle with a huge gap and found support at the 38.2% retracement level of the entire rise from the June 2013 bottom at $388.87 to the August 2013 top at $513.74. The best the bulls can hope for at the moment is filling the gap, which would be a problem if that turns out to be a Breakaway gap.
The stock faced supply at the 38.2% retracement level of the fall from the 2012 top to the 2013 bottom. It can find support around $450 as it is the confluence zone of the 50% retracement level, a trendline and the last swing low," according to the report.
According to Value Walk, Apple Inc. (NASDAQ:AAPL) stock is extremely cheap, it can now be compared to other tech growth stocks like Telstra Motors Inc (NASDAQ:TSLA) and Netflix (NASDAQ:NFLX).
It was extremely cheap that Carl Icahn, an American businessman and investor and the majority shareholders of the diversified holding company Icahn Enterprises, reinvested in the company.
Mr Icahn called his investment a "no brainer" as Apple Inc. (NASDAQ:AAPL) is now "undervalued."
In an interview with CNBC on Wednesday, Mr Icahn said that he bought shares after it traded below $470. This was even lower than what Mr Icahn paid for his previous investment on Apple back in August. He said that he continues to invest in the company not because he loves the iPhone products but he aims for his investors to make money and for Apple to reallocate some of its massive cash pile. Mr Icahn saw that shareholders will be returned their investments in the form of a bigger stock buy back.
Mr Icahn attributed the terrible dive in shares to Apple's Sept 10 announcement of the iPhone 5S and 5C that fell short to the expectation of the market.
Analysts saw that the iPhone 5C was not cheap after all, hence it cannot tap the emerging market which was supposed to bring the higher market revenue.
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