Apple shares test key support – Apple (NASDAQ:AAPL)

In the stock market, there are different things that are driving it at different times. It could be a particular sector or industry. It could even be a major commodity like oil.

But sometimes, and it can be just one individual stock that can influence the direction of the entire market. And that is the case now with Apple Inc. AAPLThat’s why our team of trading experts have named it our stock of the day.

When markets fall, it is because they are out of balance. There are more shares for sale than for sale. This causes the price to fall.

When they reach a support level, the tide turns. There is enough demand, or buy orders, to absorb all the supply, or sell orders.

As you can see from the chart, Apple shares found support at the $218.00 level after a nasty sell-off. The price has stopped falling for now at least.

Also read: Apple joins Meta, Google, pledges support for Biden’s AI regulations

There is a reason why there is support at this price. It was a resistance level in June, and levels that were previously resistance can turn into support. This is a common occurrence, not just in the stock market, but in all financial markets.

This is happening because there are traders and investors who sold their AAPL shares when the stock met resistance. At first they thought they made a good decision because the stock went down after that.

But the price eventually rose above $218.00. When this happened, many of these sellers thought they had actually made a bad decision. Some swear that when the stock eventually turns around and falls back to its selling price, they will buy back their shares.

So now that AAPL is back at this price, these remorseful sellers are placing buy orders. And for now, this large concentration of these orders has created support and put a floor under the stock.

If this support breaks, it means that buyers have completed or canceled their orders. This will prepare Apple for a decline. And this could bring the whole market down.

But if it stays that way, the market should be able to move higher. Right now, Apple is in the driver’s seat and about to tell the market which way to go.

Read more: