Apple The Stock to Watch

Published on Tuesday, 08 December 2009 09:29 Written by Danny Miller

New York, Dec 7^th (TradersHuddle.com) – Stocks will likely start under pressure as the Dollar shows strength, and investors worry about economic growth. Apple (NASDAQ:AAPL) will be a stock to watch.

Apple (NASDAQ:AAPL) shares have been one of the leader stocks in the rally since the March lows. Lately, the stock has been underperforming the broad market, shares have been down for 5 consecutive days. On Friday Apple broke for the first time since last March its 50 day moving average, resulting in significant technical damage to its uptrend.

Investors were looking for a move higher, but shares struggled to get above $208. After breaking the 50 day moving average, around the $195 area, it will be expected for this level to act as significant resistance in the coming days.

On the other hand support is expected below $190, with significant consolidation area around $185, the longer the consolidation area the better support area that it will become. If the stock does not hold the $185 level, then the next level to watch is around the $175 area, which was its earnings gap.

Keep a close eye on Apple, with a down market we will likely see the test of the $185 level today.