Few companies or stocks have been as well-regarded over the last decade as Apple (AAPL). Each new product offering has become a license to print money and the rollout of each new iPhone version close to a national holiday. But Apple’s current correction is getting serious and approaching some significant technical levels. Already down roughly 30% from its April 2015 high, Apple’s 50-week simple moving average (SMA) is on the cusp of crossing its 100-week SMA (first yellow bubble). The weekly chart also shows that Apple has breached its 200-week SMA (second yellow bubble), which could extend losses to a 61.8% Fibonacci retracement from the move off of its 2013 low to its 2015 high (third bubble). That support level in the coming weeks crosses with Apple’s long-term bullish trendline from its 2009 low at roughly $86 making it a very significant level and a target for technical traders. Traders like to test these types of levels and the movement (up or down) from these levels tend to be sharp.
About the Author
Editor-in-Chief of Modern Trader, Daniel Collins is a 25-year veteran of the futures industry having worked on the trading floors of both the Chicago Board of Trade and Chicago Mercantile Exchange. Dan joined Futures magazine in 2001, before the name change to Modern Trader, and in 2005 he was promoted to Managing Editor, responsible for overseeing all the content that went into Futures and futuresmag.com. Dan’s incisive reporting and no-holds barred commentary places him among the most recognized national media figures covering futures, derivative trading and alternative investments.