Apple Chart Approaching $90 Technical Line In The Sand
There’s no doubt about it: Apple Inc. (NASDAQ: AAPL)’s technical picture has been pretty bearish in the past couple of months. However, the stock is now in danger of things getting a lot worse.
Benzinga first reported about a bearish technical signal in Apple’s carts on April 29 of last year, 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.
The stocks post-earnings sell-off now has it once again testing its 2015 flash crash lows of around $90. Apple has repeatedly found technical support I this region in the past couple of years, including during the early 2016 market sell-off. A breakdown below $90 would be a significantly bearish signal for Apple traders.
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In the longer-term, however, Apple bulls remain optimistic that Apple simply got overheated and is repeating the roughly 40 percent pull-back it experienced in 2012-2013. If that’s the case, the stock could dip as low as $77 before resuming its uptrend.
Any way you dice it, a dip below $90 would be very bad news for Apple’s technical picture in the near-term. The $77 level represents at least another 16 percent downside for the stock from its current price.
Disclosure: the author holds no position in the stocks mentioned.
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