While the broader market sold off Monday, extending its losses from the prior session, Apple managed to stay positive. In fact, the stock rose more than 1 percent while the Nasdaq composite sank 2 percent.
Still, the tech giant's technical picture appears increasingly ugly.
Last week, I highlighted for clients that the 100-day moving average was a key level to watch. Once the stock broke that line, it fell sharply, with some obvious help from the big decline in the broader market.
Now, it is already testing its 200-day moving average. That, too, has been a key line to watch.
In late 2015 and early 2016, that moving average provided some very tough resistance. Once the stock broke above that line in mid-2016, that old resistance became new support (as the technical analysis adage goes) and the stock bounced off that line twice in the second part of the year.
Therefore, it should provide some support here (and is likely why the stock is acting better than the broad market Monday).
Of course, if it breaks below that line at any point in the future, it should lead to another drawdown, but it looks as if the 200-day moving average wants to stymie that decline for now.
Remember, Apple had already been declining before the broad market rolled over last week, and thus the stock is more oversold than the S&P 500 right now in the short term.
