Apple Stock Could Drop Below $130 As It Declines Further

Summary:

Apple stocks are trading lower as investors take profit following an extended run to the upside that has lasted for more than a year.

Apple stocks continue to slide this Friday after the company and Hyundai Motors failed to confirm if a potential partnership would go ahead. Hyundai Motors executives are also said to be spooked about the idea of serving as an outsource manufacturer for Apple.

There had been rumors that Apple was considering investing in the electric vehicle sector, with Hyundai being potentially tapped as the manufacturing partner for the cars and the batteries. Apple’s official policy of secrecy on any of its upcoming products means that there has been a total blackout about the situation from Apple’s end. Hyundai is also declining to provide updates.

Apple had a stellar quarter and reported results that beat estimates after the company reported stronger-than-expected sales of its iPhone12 range of phones. However, Apple’s stock has been on the slide after investors took profits following the 100% gain from December 2019 to the close of trading yesterday.

Technical Levels to Watch

Today’s 2.8% slide extends yesterday’s violation of the 137.93 support. This move looks set to confirm the breakdown of that level as price aims for the channel’s lower border. Standing in the way is the 132.76 support. This support level and the channel’s lower edge must give way for 125.51 to come into the picture. 119.82 and 112.58 are additional support targets.

On the other hand, a bounce from 132.76 allows for a potential retest of 137.93, with 144.92 serving as an additional upside target. A break of this area takes Apple to new heights, targeting the 150.0 psychological resistance.