Apple Inc. (NASDAQ:AAPL) lost about 1% yesterday, with a volume of 35 million only, really poor against the daily average of 47 million. The stock has been in a corrective mode for the 7th week running and that is an interesting point, keeping the duration of the last two intermediate corrections, both of which ended in the 7th week. The long term trend stay decidedly bullish and the ongoing correction haven’t been able to put any dent on it.
Apple Inc. (NASDAQ:AAPL) has seen tremendous demand for the iPhone 6 and iPhone 6 plus, resulting in a record breaking first fiscal quarter net income of $18 billion. Perhaps the most amazing fact to many would be the 30% growth of revenue on a y-o-y basis, based on the 70% growth in China, which is fast becoming the most important pillar of the business empire of the company. With 40% of the total revenue coming from China in the last quarter, the importance of the country will keep increasing.
The two factors making the dividend-hunting investors interested in the stock would be the free cash flow of the company and the earnings growth. The earnings, as reported earlier has been very strong driving the stock price higher, with the assistance of a massive buyback f shares, which amounted to $56 billion in 2014 only.
Technically, the strength of the stock is evident. The interesting patterns come from the previous highs of the stock providing a lot of support later, keeping the momentum strong too. The most interesting point definitely would be the similarity seen among the intermediate corrections. The duration of 7 weeks has already been noted but the price structures are creating Fractals too. If the same pattern is repeated, then another small downmove can be expected to end the entire corrective phase, leading to a new high in the next 2-3 months.