Apple Holding by a Thread

Published on Friday, 22 January 2010 13:53 Written by Christopher Lynn

New York, Jan 22^nd (TradersHuddle.com) – Shares of Apple Inc (NASDAQ:AAPL) have been under pressure throughout the day, following the tape of the overall market weakness. Apple’s stock current calculated support is at $204.1, which has been violated throughout the day, but still holding around that level.

Apple shares have defined resistance at $215.55, which provides a well defined reward for traders wanting to establish a long position at these levels. What is unusual this quarter for Apple is that we haven’t got the run up into earnings and most importantly the stock failed to continued momentum ahead of its expected tablet pc announcement slated for next Wednesday, January 27^th.

Investors were patiently awaiting a breakout, so that momentum can come back into the stock, as the stock break through the $208 level there was no follow through and Apple’s performance has been erratic since then.

Today’s price action dipping below the $204, it is not that encouraging for the overall market, because a close below support could trigger additional selling in the stock that could push the stock down to the low $190s.