Facebook New Messenger App Rattles Apple Shareholders

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

Apple Inc. AAPL shares are trading lower by $1.72 in Wednesday's session. The catalyst for the decline may a report from The Economist intimating that there may be an upcoming ‘messaging war' brewing instigated by Facebook and its plan to transform its Messenger app into a ‘platform'. If Facebook is successful in their attempt to create the new platform, it may pose a serious threat Apple and Google and highly profitable smartphone systems, IOS and Android. In today's session. investors are not waiting for the scenario play out and are exerting major downside pressure on Apple. The issue, which has been range bound since $121.63 and $129.56 since March 3, found resistance ahead of the range and put in a pairs at the $128 level on Monday and Tuesday. After a brief rally off the open, it found resistance just above Tuesday's close ($126.69), only reaching $126.82 before sharply reversing course. So far, the decline has taken the issue as low as $124.80 and has not been able to distance itself that level. If hte decline continues over the next few ,. there may minor support levels until the pari of lows from March 13 ($1225.58) and March 16 ($122.87). Beyond that stands the bottom of the trading range at its March 12 low ($121.63.