Apple’s stock dropped $5.10, or 3.31 percent, to $148.97 on Friday as investors absorbed recent news and braced for the iPhone event this week. However, Apple is still in the headlines for other reasons. Following record highs last week, the stock fell on Friday following news of a court verdict in its lawsuit with Epic Games.
Every time Apple has announced profits this year, the stock has plummeted. Unfortunately, such sell-offs occurred when the stock was at or near its all-time highs, putting the stock at a disadvantage. Even more upsetting was the fact that Apple consistently outperformed analysts’ forecasts while the stock fell.
However, rather than a significant drop in the aftermath of the most recent report, the stock merely returned to around $145, close to its previous high. It was also supported by the 21-day moving average. Since then, the stock has risen beyond $150 and reached fresh all-time highs earlier last week.
For the time being, investors are seeing a return to the crucial $150 level and the 21-day moving average. Bulls who are looking for a quick profit might take advantage of the current price drop ahead of the company’s event on 14 September.
If it breaches Friday’s low, investors may consider exiting the trade and buying on a possibly bigger dip down to the 50-day moving average or the $145 region. The $138 and the 200-day moving average may come into play if the price falls below $145.
Up until around $160, if Apple trades through its all-time high of $157.26, the 161.8 percent extension is in play for the stock. Above that level, depending on how investors react to the event, the $172 to $175 range is on the table for consideration.