Apple Shares Back On The Ropes: A Technical Look

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Apple Inc. AAPL shares were trading sharply lower by $5.77 (4.8 percent) at $113.95 in Tuesday's session. After luring Apple worshippers back into the issue on Monday, they are being tossed aside along with the rest of the market.

Monday's rally took the issue all the way back to the $120 level, just shy of its 200-day moving average ($121.31) and above the former support level that provided the base for the pre-earnings rally to $132.97.

After a lower open ($117.81 vs. Monday's close of $119.72), it managed to rally to $118.18 before sellers followed the issue. It has sliced through Monday's low ($116.53) and the pair of lows in the $114 handle from last Wednesday and Thursday.

It is attempting to find support at $113.71 and is struggling to get back above $114. If the decline continues, the only identifiable support comes in at last Tuesday's seven-month low ($112.10).