Facebook New Messenger App Rattling Apple Shareholders?
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Apple Inc. (NASDAQ: AAPL) shares were trading lower by $1.72 in Wednesday's session. The catalyst for the decline may be a report from The Economist intimating that there may be an upcoming "messaging war" brewing, instigated by Facebook Inc (NASDAQ: FB) and its plan to transform its Messenger app into a "platform."
In Wednesday's session, investors are not waiting for the scenario to play out and are exerting major downside pressure on Apple. The issue, which has been range bound between $121.63 and $129.56 since March 3, found resistance ahead of the range and put in a pair of lows at the $128 level on Monday and Tuesday.
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After a brief rally off Wednesday's open, it found resistance just above Tuesday's close ($126.69), reaching $126.82 before sharply reversing course. So far, the decline has taken the issue as low as $124.80 and has not been able to distance itself from that level.
If the decline continues over the next few, there may minor support levels until the pair of lows from March 13 ($125.58) and March 16 ($122.87). Beyond that stands the bottom of the trading range at its March 12 low ($121.63).
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