Apple Is Rotting

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

Apple Inc. AAPL shares were trading lower by $3.90 at $108.75 in Friday's session. It is poised to close lower for the fourth day in a row after ending Monday's session at $117.16.

The latest concern is about lower iPhone sales in the next month. However, this a familiar trading pattern for the issue ahead of a new launch as potential buyers of the phone wait for the new edition.

After a lower open ($110.43 vs. Thursday's close of $112.65), it briefly rallied and found resistance just above Thursday's low ($111.63), reaching $111.93 when it cratered.

So far, the decline has taken the issue beyond its former low for the down move ($109.63), reaching $108.11 before rebounding back over $109 for the time being. The current low coincides with its January 21 low at $108.27. If that low is breached, the next identifiable support level may not be until its January 20 low ($106.50).