Apple shares closed lower on Monday after the company announced its highly anticipated music streaming service, but investors shouldn't be worried about the stock taking a turn for the worst just yet, according to CNBC's "Fast Money" traders.
The stock has been in a resting period for the past few months, but it looks ready to "take the next leg higher," trader Guy Adami said. He warned, however, that a fall below its March low of $124.25 would give reason for concern.
Apple's stock is currently sitting right its 50-day moving average, around $129. "If it holds that support I do think we go towards the $140s, but if we break through that, I think we're down toward the low $120s," said "Fast Money" trader Pete Najarian said.
Overall, Monday was a rough day for technology stocks. The market vectors semiconductor ETF slipped nearly 2 percent after hitting highs last week, while the technology select sector SPDR fell about 1 percent.
"There's a little bit of concern out there right now in terms of the technology and the selloff and is this another rotation into the cycle of something else," Najarian said.
"Facebook really disappoints me. I keep thinking it's going to blast through that $85 level that it's had trouble with a number of times," Seymour said. "I still think Facebook's OK…. I do think IBM's making that next leg lower though."
Tim Seymour is long AAPL, T, BAC, C, DIS, F, GE, GM, GOOGL, INTC, KORS, SUNE, Tim's firm is long BABA, BIDU, MCD, NKE, NOK, SBUX, YHOO.
Long AMAT, AAPL, BABA, BAC, BMY, BP, CSX, DISCA, DKS, FOXA, GE, KKR, KO, LLY, MBLY, MRK, PEP, PFE, he is long calls AAL, AAPL, BBY, BMY, C, COP, DAL, EBAY, EEM, EMC, ETFC, F, GE, GS, HPQ, IMAX, LEN, MT, MU, NEE, PFE, SXC, SYY, TEVA, TJX, UAL, UPS, VZ, WSM, XLF, ZIOP. Today he bought SXC calls.
Karen is long BABA, BAC, C, FINL, FL, GOOG, GOOGL, JPM, KORS, M, URI, she is short SPY, Her firm is long ANTM, AAPL, BAC, C, DIS, FBT, FINL, FL, GOOG, GOOGL, GPS, IBB, JPM, KORS, M, SUNE, URI, XBI, KORS call spreads, URI calls, SPY puts, her firm is short IWM, SPY, MDY, M calls, Karen Finerman is on the board of GrafTech International.
Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.