$500 is a line in the sand for Apple

Ten days ago I urged you to buy Apple (AAPL) when it plunged 10% to about $500. You could either buy for long term or you may get some quick income via dividend and call option premium. Sure enough, Apple has recovered quickly and it is now at $544 per share. Likely Apple may get some resistance at its 50 days moving average  around $548. I won't be surprised to see it decline again from this level and may retest its support level at $500 in the next couple of weeks. However, I don't think Apple will go down too much. I think $500 is a line in the sand for Apple. For one thing, this is a very strong support line for Apple technically speaking. There is another reason for it. One of the most successful activitists and billionnaire, Carl Icahan, bought a huge amount of additional Apple shares (worth $500 million) when it dropped to this level. This means Icahan also considers this as a very good deal for Apple. If Apple indeed plummets again, don't miss another opportunity. I'm not sure Apple will stay at this low level for long.