“Only a strong close beneath that channel would jeopardize the bullish case,” Coe said. “In the meantime, we view weakness as a buying opportunity as risk can be limited to just beneath current levels.”
Apple represents nearly 12% of the Nasdaq-100 ETF.
“In any market downturn, investors turn to the leaders for clues of when the selling might end, as such, Apple will likely be in focus with traders looking at the low prices as an opportunity to buy,” TradersHuddle.com said in a report Monday. “Apple has been trading erratically this quarter, as the stock failed to reach a new higher high after it reported a blockbuster earnings report; frustrated investors had to endure a significant technical blow as well, with the price action breaking below the 50-day moving average.”