The daily chart reveals a considerable downside gap that saw the Apple stock price plummet from Friday’s close of 313.05 to the current rate of 300.27. The Apple stock price drop seen earlier in the NY trading session is as a result of the broad-based selloff that has seen the Dow Jones drop by nearly 800 points. If things stay the same, this will be the Dow’s single most significant daily drop in almost 3 years.
Also contributing to Apple stock price underperformance on the day is the news that has just filtered in from the US Supreme Court. According to a Reuters news report, Apple Inc’s bid to overturn a $440 million (339.4 million pounds) penalty to be paid as damages for unlicensed use of technology for internet security that belonged to patent licensing firm VirnetX Inc has failed.
According to the news report, the US Supreme Court justices rejected the appeal from Apple on the matter, allowing the judgement that was also upheld by the Appeals court to stand.
This news is weighing on the Apple stock price, even though it is trading slightly higher on the day.
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After a spectacular bullish run which saw it able to ride the waves of the US-China trade imbroglio, Apple stock price has found itself testing a full-fledged support level, formed by previous highs of January 2 – 6, 2020. This support lies at 300.32.
A Fibonacci retracement trace from the swing low of August 5 to the swing high of February 12 shows that the price candle for the day is hanging on the 23.6% Fibonacci retracement level. This Apple stock price level could provide stronger support than 300.32. A break below this area could bring 276.15 (38.2% Fibonacci retracement into focus).
On the flip side a price bounce of the present levels may allow Apple stock price to retest the lows of yesterday at 310.40, with previous lows also coming up at the same level on February 13 and February 15 2020.