BZ Chart Of The Day: Apple Tests Critical Support

Zinger Key Points
  • Apple has a 52-week high of $182.94 and a 52-week low of $122.25.

Shares of Apple Inc. AAPL are holding above critical support, but if this support breaks, the stock could form a new downtrend.

Support is a large group of buyers looking to buy shares at, or close to, the same price. As you can see on the following chart, in this case, it's $156.

If the price of a stock falls below the support level, traders say the support has been "broken." This is typically a bearish dynamic. It shows that the investors who created the support are gone; They've finished or canceled their orders.

With this demand for the stock taken out of the market, sellers will be forced to accept lower prices. This could push Apple's stock into a new downtrend.

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