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China Worries, Technical Damage Weigh on Apple (AAPL)

August 4, 2015 11:21 AM EDT

The big story on Wall Street Tuesday is the continued sell-off in market leader Apple (NASDAQ: AAPL). Shares are down 3.4% on volume that is already more than 1.4x the full-day norm. Shares are now down 15% from the recent high of $134.54.

Contributing to today's downside is data from Canalys that Xiaomi regained the lead as the largest smart phone vendor in China with 15.9% market share. Huawei is second in China, growing 48% sequentially. Apple dropped to third place, followed by Samsung and Vivo.

Also weighing on the stock is weakening technicals. After breaking below the 200-day moving average on Monday, Cornerstone Macro's Carter Worth said the stock could be headed another 6-8% lower from Monday's close. This would suggest a price of around $109-$111.

Meanwhile, with $50 billion renaming in its ongoing $140 billion share repurchase plan as of June 27, 2015, investors are looking for Apple's treasury department to start buying back aggressively around this level to support the stock.



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