Apple Inc. AAPL shares are down another 2.1 percent on a weak day for the market Tuesday, and traders are certainly paying attention. Apple share are now down 6 percent since the company reported disappointing fiscal Q4 iPhone sales numbers and margins last week.
Apple shares fell by less than 3 percent immediately following earnings. However, the stock's continuing negative momentum is much more troubling for shareholders.
Clearly, traders are watching to see just how low Apple can go. The stock is the top trending ticker on Stocktwits on what would be its fifth consecutive down day in a row. Apple is also seemingly headed for its lowest close since early September.
From a technical standpoint, Apple is also threatening to close below its 50-day simple moving average (SMA) for the first time since early September as well. The stock’s last dip below the 50-day SMA lasted for only one session, and the stock surged from around $103 to above $111 in the four days that followed.
Apple bulls are hoping for a similar bounce this time around.
The Vetr community seems optimistic. Earlier this week, Vetr upgraded Apple from 3.0 Stars (Hold) to 3.5 Stars (Buy).
Despite the post-earnings selloff, Apple remains up more than 5.5 percent in 2016.
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