When Will Apple's Stock Chart Say 'Buy'?
When Apple Inc.'s (NASDAQ:AAPL) stock failed to get through the resistance at the $137 level, it became obvious that the technology sector was about to sell-off.
At 22% of the S&P 500 technology sector, Apple is the sector’s biggest position. This means movements in Apple have a bigger influence on the tech sector than other stocks do.
There’s a good chance the sell-off ends if Apple reaches levels around $124.50. Levels that had previously been resistance can turn into support, and $124.50 was resistance for Apple in March. Resistance turns into support because of seller's remorse.
Many of the investors who sold at $124.50 regret doing so because now the stock is higher. A number of these remorseful sellers decide to buy their stock back if they can get it for the same price they sold at.
As a result, a large number of buy orders are placed at $124.50. If there are enough of these buy orders, it will create support. This support, or abundance of buy orders, could put a floor under the stock and halt the sell-off.
See also: How To Buy Apple Stock
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