Apple Breaches Two Key Technical Levels

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

Apple Inc. AAPL shares are trading sharply lower by $3 at $118.30 in Monday's session. The issue has been under severe selling pressure when it failed to impress the Street with its Q3 earning report on July 21. Apple, which has been treading water in the lower $120 handle since the report has given way to few key technical levels in today's session. First of all, it has breached its 200 day moving average ($120.86) which is a key longer-term indicator for many investors and funds. Also, it has fallen below another key technical level' Before the pre-earnings run-up to $132.97, Apple bottomed at $1 and $119.22 on July 22. Adding further significance to that level is that Apple bottomed at $119.20 in after-hours trading following their Q3 earnings report.and provided the base for a rebound to $127.08 two days following the report. Off the open, Apple found resistance just ahead of Friday's high 9$112.64), only reaching $122.57 before reversing course. So far, it has reached $11.52 and has rebounded back over $118. The current low corresponds with its February 3 low at $117.61. If the current intraday low is breached, the next identifiable support may not be until it February 2 low at $116.08.
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