Apple Stock Bounces Back to Test Key Moving Average

By Emma Duncan / February 06, 2018 / www.schaeffersresearch.com / Article Link

Dow name and tech powerhouse Apple Inc. (NASDAQ:AAPL) has pulled back with the broader market in recent days, but Cowen analyst David Seaburg said yesterday that you shouldn't count Apple out just yet, telling CNBC the stock is a "no-brainer." Of course, this comes after the company last week reported fiscal first-quarter earnings. Meanwhile, AAPL shares are bouncing back today, last seen up 2.1% at $159.79.

The security continues to test its 200-day moving average, though, a trendline it breached yesterday for the first time since July 2016. From a broader perspective, the blue chip is still hanging on to a 22.6% year-over-year gain, touching a record high of $180.10 on Jan. 18.

Looking towards the options pits, sentiment has been very bullish. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows AAPL with a 10-day call/put volume ratio of 2.57, ranking in the 88th percentile of its annual range. This suggests calls have been bought over puts at a faster-than-usual clip during the past two weeks.

Turning back to analyst coverage, Apple sports 14 "strong buy" or "buy" ratings, versus 12 "hold" or "strong sell" recommendations. The average 12-month price target, meanwhile, stands up at $193.82 -- a 21% premium to current levels.

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