Apple Knocking On The Door Of A Major Technical Breakdown

Apple Inc. AAPL has made fresh 52-week lows on Thursday and is now in danger of a major technical breakdown. The $90-$92 level held as support for the stock during both the market’s January sell-off and last August’s flash crash. If Apple breaks down significantly below $90, the stock could be in for some major additional downside.

It’s hard to make a strong argument for Apple finding technical support somewhere in the $80’s. In fact, a breakdown below $90 could mean that shareholders are in for a repeat of the stock’s roughly 40 percent 2012-2013 pullback. That would mean that Apple could be headed to the $77 level before it possibly resumes its longer-term uptrend.


 

Regardless of where you see Apple eventually finding technical support, a dip below $90 would be a significantly bearish move.

Related Link: Have You Ever Wondered How Companies Like Apple And Facebook Fire Employees?

Benzinga first reported about a bearish technical signal in Apple’s carts on April 29 of 2015, immediately after the stock hit all-time highs of $131.29. In just over a year since that story, Apple’s shares have fallen nearly 30 percent.

Disclosure: the author holds no position in the stocks mentioned.