If Apple Shares Stay Under $500 For Long, Look Out Below!

One thing which has to be considered here is that if you go back to early 2012, Apple shares rose from $400 to $500 in almost record time. Its stock closed out 2011 at $401.44 on a dividend-adjusted price and shares first hit $500 on February 13, 2012. Shares then went from $500 to $600 in another rapid measure as the stock hit $600.00 for the first time on March 15, 2012. The stock then took until September 18, 2012 to hit $700 for the first time and that peak-a-boo above $700 was the top that only lasted a few days.

With the stock currently at $504, things might not seem so bad. We have brought up one statistic all the way down that should be a stark reminder for investors about falling in love with a company and maintaining that love for too long. Apple’s market cap is now about $475 billion since the stock has fallen so much. For Apple to go back to above $700 it will be a rally of about 39%. That translates to more than $185 billion in theoretical investor inflows into Apple alone.

If you look at the two-year Apple stock chart from stockcharts.com you will see that $500 to $510 has tried to be hard support for about 3 months now. If this level does not hold, there is really nothing but what technicians would refer to as “dead air” on the chart down to $425 to $450.

What could be a saving grace? A very positive earnings report next week that blows the doors off of estimates… Stay tuned.