It's shaping up to be another bad week for Apple.
The stock slid more than 3% on Monday after HSBC cut its price target on the stock to $174. In a note to clients analyst Erwan Rambourg cited tariff worries as well as a potential slowdown in iPhone demand in China as reasons to be cautious on the stock going forward. The stock was trading at about $184 in Tuesday's premarket, up nearly 1% from Monday's close.
Shares of Apple are coming off two straight weeks of losses, and after falling nearly 15% since the May 1 high — erasing nearly $130 billion in market cap — the stock is on track for its worst month of the year. It is in bear market territory after falling roughly 22% from its October intraday all-time high of $233.47.
Apple has been hit especially hard by trade war jitters. The company assembles its iPhones in China, and the region is also a key buyer of Apple products. In 2018 Greater China generated $51 billion in revenue for Apple, the third-highest region behind the Americas and Europe.
But one investor says the stock's fundamentals remain strong, and calls the pullback a buying opportunity.
"The bottom line is it's a great company and when it gets hit like this, this is one of those instances where you want to be greedy where others are fearful," Joule Financial's Quint Tatro said Monday on CNBC's "Trading Nation." "When it gets hit like this you want to be a buyer for sure."
From a technical standpoint, Oppenheimer's Ari Wald says investors should be watching two key levels.
"The stock has corrected into its 100-day moving average. That's going to be the start of support at $180, followed by the gap at $173. ... On the upside I think you want to watch out for $192. ... You get above $192 and I think the stock can start trading better again." The $192 level is about 5% higher than Monday's closing level of $183.09.
Despite ongoing uncertainties about tariffs and the U.S.-China trade war, Wald thinks overall demand for technology stocks will continue to prop up shares of Apple.
"The technology sector overall does keep a floor for it in general when market volatility hits," he said.
Disclosure: Tatro holds Apple shares personally and on behalf of Joule Financial clients.