Apple Inc. (NASDAQ:AAPL) shares surpassed $500 billion in valuation yesterday. Serge Berger, Head Trader & Strategist at The Steady Trader believes that Apple Inc. (NASDAQ:AAPL) shares are headed toward $580. The recent upward swing in Apple Inc. (NASDAQ:AAPL) stock was driven by news. Last week, the Cupertino-based company was awarded a patent for a camera system. This technology lets users refocus on an image after the initial shot. Each new patent for Apple Inc. (NASDAQ:AAPL) sends a signal to investors that it could be a component of the next big breakthrough product.
Last week, the stock was fueled by reports that Hon Hai Precision Industry Co. – or Foxconn – had ramped up production of the iPhone 5S, while slashing the output of the low-cost iPhone 5C. That’s good news for the company as the 5S is believed to have higher margins. The Taiwan-based OEM vendor has assigned 300,000 workers at its Zhengzhou, China factory to produce a whopping 500,000 iPhone 5S units every day, reports the Wall Street Journal. That has prompted Apple Inc. to reduce waiting time from 2-3 weeks last month to 3-5 days now.
Apple begins respecting its technicals again
Serge Berger says that Apple Inc. (NASDAQ:AAPL) began to follow its technicals after emerging from below $400 levels. Last week, the stock surpassed its 21-day moving average in a bullish pattern. Berger considers it an indication that the stock is likely to witness an upward swing in the mid-term. Last week, the stock also went above the 50% Fibonacci retracement line from the sell-off that began after Apple Inc. (NASDAQ:AAPL) shares touched an all-time high of $705 in September 2012.
Apple Inc. (NASDAQ:AAPL) may witness the next big upward momentum if activist investor Carl Icahn’s talks with Tim Cook prove fruitful. Icahn has been persuading the world’s most valuable tech giant to go for a $150 billion share buyback.
Apple Inc. (NASDAQ:AAPL) shares rose 1.18% to $557.75 in pre-market trading Tuesday.