From Investopedia:

As technology stocks continues to weaken, one bellwether is close to breaking down to new lows not seen in a couple of months. That would be Apple.

Shares have continued to slide over the last few weeks, albeit at a moderate pace: As of Friday, Apple (AAPL​) is sitting above $142.50, a level that it touched and held four times in June. But if the stock breaks below this key level, it’s likely to trade down to $140 and below.

Here’s why:

1. For more than a month, $142.50 has been Apple’s support, and a breakdown would bring about new weakness and signal to market participants that a bigger correction might be on the way.
2. Just below $141 is the 38.2% retracement​ level of the stock’s rally this year. Should this retracement fail to hold, it’s likely that Apple sells off down to its next major retracement support of around $136.
3. With third-quarter earnings due in a few weeks, a breakdown going into that report will only dampen sentiment and cause valuation concerns. That could accelerate the move to the downside into earnings if investors are nervous about holding the stock through the report.

Apple is likely to see increased volatility over the coming weeks since we are at the end of a descending triangle pattern. This is when there is a horizontal base supporting a stock and a down-trending resistance line as well. Usually these patterns see breakouts to the upside.

This makes the $142.50 level more important, because if it holds, the price is more likely to break out above the descending triangle. But a breakdown below it would negate this pattern and result in a downside move to the next major support level.

Support Levels to Watch

The next logical level would be $140, because the stock found support there at the end of March and the middle of April. However, this is more of a psychological support given the round number. Technically, a level at which to look for a bottom would be $136, the 50% retracement of this year’s rally.

Read more: Why Apple Stock Is at a Critical Point Right Now | Investopedia http://www.investopedia.com/news/why-apple-stock-critical-point-right-now/#ixzz4mMmj0NjM 

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