“At the beginning of the month, there was plenty of optimism over the U.S. and China reaching a trade deal,” Bret Kenwell writes for TheStreet. “A Twitter rant from the president put those assumptions on hold and infused a new bout of volatility into the market.”
“So far, U.S. equities have handled the news pretty well, while stocks like Amazon, Netflix and Facebook doing their best to hold up,” Kenwell writes. “But Apple stock hasn’t been as resilient, in part because unlike the three other companies just mentioned, it has much more exposure to China.”
“$185 acted as support in March while Apple stock was working up the strength to push above its 200-day moving average. After coming off a post-earnings high near ~$215 in a rather orderly selloff, shares again found support at $185 — and again just below the 200-day,” Kenwell writes. “This time, the 200-day acted as resistance and $185 eventually failed after a week of support… Look for Apple stock to reclaim $185 and $191, or see if it works its way down to $175.”
Read more, and see the chart, in the full article here.
MacDailyNews Take: Apple shares are already on sale. $175 would be a deep discount sale!