Trading in Apple (AAPL - Get Report) has been a train wreck this week. Yesterday, shares of the $507 billion tech behemoth fell more than 6.4% -- its biggest single-day loss in four years -- as a handful of fears come to a head for sellers. So, the real question now is whether the selling is over. At this point, that looks like a good bet.
Apple's selloff yesterday took shares to within a few points of strong support at $520, a price that's acted like a floor for shares of the technology firm the last couple of times they tested it. In real terms, $520 is a price level where buyers start to think that AAPL looks cheap again -- that's an important safety net of demand for people who own Apple right now.
Apple has a sloping resistance level up around $600 right now, giving traders a potential price barrier to keep a close eye on. That said, I think that buyers have a good opportunity to jump into Apple here with limited risk -- just wait for a bounce off of that $520 support level before pulling the trigger. Apple has been volatile lately -- traders would be wise to keep a tight stop on this name...
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