$APPL: Apple finds key support after August sell-off.
9 August 2023Apple has had a spectacular start to 2023, locking in 7 consecutive positive months and putting in an
increase of 52.16% year to date at its peak.
However, August so far isn’t looking as healthy. Despite the positive financial performance beating Q3
earnings expectations, Apple shares are down 8.48% for the start of August. Profit taking after 7 green
months may be a factor in the recent decline, so the coming days will be key to see if this is a short-term
fall or the beginning of a longer-term downtrend.
From a technical perspective, price has fallen through an upward trend line that begun at the start of
2023. Price appears to have landed at a key support & resistance level around $177-179. This temporary
bounce also lines up almost exactly at the 2022 yearly open price of $177.83, which adds more strength
to this support level.
Holding this support level is critical for the price, as a failure to do so could potentially lead to further
declines, with the next support level likely around $155-157. Additionally, the Relative Strength Index
(RSI) on the daily chart recently touched an oversold level of 30, followed by a slight bounce. Traders will
be watching to see if the two factors of RSI oversold and price at a key support level will be enough to
stall the recent decline and potentially be a pivoting point to send price back north.
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