The Apple stock price opened at a new record high this Monday but has lost steam and is now trading lower as investors take some profits off the table following a stellar 10-day uptrend move.
Some of this selling may not be unconnected with the latest executive order from US President Joe Biden to tackle antitrust practices in the technology, healthcare and agricultural sectors. Several of the big tech stocks are trading lower as a result.
On Friday, it was reported by The Information that Apple was entering into talks with the National Football League to purchase the streaming rights of the NFL’s Sunday Ticket games.
AT&T Inc’s T DirecTV currently holds these rights. Successfully acquisition of these rights gives Apple TV+ a significant market share on video-streamed live sports events.
Apple stock is presently trading lower by 0.32% as of writing, which is only the second day in ten that the stock is trading lower.
After breaching the previous 2021 high at 145.09 on Friday, Apple formed a new record high for the year on Monday at 146.32. However, sellers have come into the fray and are attempting to force a correction. The weekly chart shows a double bottom formation in progress. If the corrective candle bounces on the 145.08 support, we could see a continuation of the measured move towards 151.68 (78.6% Fibonacci extension from the 21 September 2020 to 25 January 2021 and 22 March low price swing). Other targets to the north include 155.85 and 160.60.
On the other hand, a decline below the 145.08 support increases the potential of a dip towards 139.97 (6 July weekly low and 50% Fibonacci extension), with 137.93 and 135.94 serving as additional downside targets. This move truncates the measured move from the double bottom pattern.
