The Apple share price has been split into a quarter of its August 28 closing price as the Apple stock split takes effect. This will mark the 5th time Apple shares will undergo a split. Previous stock splits have occurred in 1987, 2000, 2005 and 2014. The essence of a stock split is usually to provide lower pricing that would make the stock still accessible to retail investors. A stock split typically occurs when the price of a stock has appreciated by leaps and bounds, making them very expensive. Apple share price could have been trading at close to $30,000 a share if no stock splits had occurred.
Under the stock split, four new shares will be issued for every Apple stock previously held on August 24. The stock split saw Apple’s stock head down from Friday’s close of 499.23 to the adjusted price of 124.81 price level, but Apple share price has gained 0.86% in premarket trading at it gets set to open higher on the last trading day of August 2020.
For the new investors not used to the concept of a stock split, you may notice a huge gap to the downside on the charts. Do not fret; this is not a selloff. It just showcases the adjusting of the price that will occur as soon as the opening bell is sounded on the Nasdaq 100.
The current premarket price is 125.89, with immediate resistance formed by the previous low of June 19 2017 and January 7 2019 at 141.57. Above this area, 168.93 could potentially form the next target to the upside, with 195.20 and 212.71 also lining up as future targets to the north.
On the flip side, failure of Apple share to break beyond the 141.17 price level could lead to a pullback, with initial support at 118.09 (October 17 2016 high) and other support targets potentially coming in at 103.27 and 90.13 respectively. This week could make for exciting trading on the stock.
