Apple shares drop: iPhone 5 jitters setting in?

“The unfathomable just took place: Apple shares fell sharply on Monday,” Steven Russolillo reports for The Wall Street Journal.

“The stock — which had gone nearly straight up since hitting new all-time highs last month — finished down more than 2% just two days before Apple is expected to unveil a new iPhone,” Russolillo reports. “Considering the stock’s sharp rally throughout the last few weeks, a little profit taking doesn’t come as a total shocker. And before panic ensues, it’s worth pointing out this selloff barely causes a dent in Apple’s yearlong rise, (the stock is still up 64% in 2012).”

Russolillo reports, “But to some chart watchers, there could be some underlying technical factors behind today’s drop that could portend more trouble ahead. From Dow Jones’ technical guru Tomi Kilgore: If it acts like a reversal, you have to assume it is one. Apple (AAPL) opened at $680.45, above Friday’s close of $680.44, then rose to an all-time high of $683.29 before reversing ground. Apple is now down more than 2%, on track to close below Friday’s low of $675.77. If it does, that type of behavior can either be called a ‘bearish engulfing’ or a ‘key reversal day.’ Either way, it warns of short-term pullback. Levels to watch include potential gap support at $648.19-$649.90 and $636.76-$638.81. A key level to keep in mind is the 50-day moving average, which comes in today at $627.19. Shares dropped 2.6% to $662.74.”

Read more in the full article here.

32 Comments

  1. Aapl will always go up and down. Up when the broker pump up the stock, down when they shoot it down. In between they buy and sell to make money.

    Ignore the downs and Aapl stock will go up over time as long as it continues to make good products.

    I see little to suggest this will change in the short term (2-3 years).

  2. Don’t you see the pattern? A legion of pundits (not to be confused with journalists) committed to helping themselves and in-the-know investors talk down a product they’ve never seen (called FUD) so that the shares drop in the days leading up to an announcement. Every announcement. Then, they buy at the deepest point just before the announcement so they can ride the rally that most always comes after the announcement when little to nothing of the FUD that was spread before the announcement comes true.

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