Shares of Apple Inc. AAPL may be breaking critical support. If they do, the stock may form a new downtrend.
Support is a large group of investors looking to buy shares at, or close to, the same price. As you can see on the following chart, in this case it is, or was, around the $156 level.
If the price stays below the support, traders will say that it has been "broken." This is typically a bearish dynamic. It shows that the investors who created the support are gone. They have finished or canceled their orders.
Either way, they have left the market.
With this large amount of demand for the stock out of the way, investors who wish to sell will be forced to accept lower prices. This could push Apple into a new downtrend.
To learn more about trading, check out the new Benzinga Trading School.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
