The Apple share price has struggled recently and currently trades at $128.10, -12% off its 2021 high, v.s the Nasdaq’s -4% decline.
Once the tech index darling, Apple (AAPL) has underperformed the Nasdaq since the start of 2021. The recent retreat from its highs has pushed the price underwater on the year with a negative return of -4.33% so far, in 2021.
After releasing better-than-expected earnings for the first quarter, many investors may be surprised to see the Apple share price floundering against many of its Tech stock peers.
The $12 Billion revenue beat was released on April 28th. This date also marks the highest price that Apple shares have changed hands at since February. The $139.50 spike after the release attracted profit-taking. The selling has continued, taking the Apple share price down to its current $128.10,
During Tuesday’s tech sell-off, Apple traded and closed below the 100-Day Moving Average at $126.50. The intra-day decline reversing after testing the 50-Day MA at $126.50. The market traded to a low of $126.70 before finishing the day -3.54% at $127.85.
As the broader market staged a comeback in yesterday’s session, Apple managed to increase on the previous days close by just $0.10c. This has left the share price vulnerable to another test of the 50-Day MA. Beyond that, the 200-Day at $122.15 would be the next target.
The Apple share price should find good support at the 200-Day MA. The indicator is met by an ascending trend in place from the September low at $103.10.
A close above the 50-Day at $126.54 would indicate that the immediate downside pressure may have lifted. This would suggest the price could rise to the lower end of the resistance band at $134.50.
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