Apple Breaches Two Key Technical Levels
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Apple Inc. (NASDAQ: AAPL) shares were trading sharply lower by $3 at $118.30 in Monday's session. The issue has been under severe selling pressure when it failed to impress the Street with its Q3 earning report on July 21.
Apple, which has been treading water in the lower $120 handle since the report, has given way to a few key technical levels in Monday's session.
It has breached its 200-day moving average ($120.86), which is a key longer-term indicator for many investors and funds. It has also fallen below another key technical level.
Before the pre-earnings run-up to $132.97, Apple bottomed at $1 and $119.22 on July 22. Adding further significance to that level is that shares bottomed at $119.20 in after-hours trading following its Q3 earnings report and provided the base for a rebound to $127.08 two days following the report.
Off Monday's open, Apple found resistance just ahead of Friday's high ($122.64), reaching $122.57 before reversing course. So far it has rebounded back over $118. The current low corresponds with its February 3 low at $117.61.
If the current intra-day low is breached, the next identifiable support may not be until its February 2 low at $116.08.
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