Support around $199 proving resilience for now, but downside pressure persists

We’re taking a look at Apple after its recent 12% pullback from its all-time highs. Currently, the stock’s shares are floating at around $208.42 a share in the pre-market trade. Looking at the daily chart, we can see that the price has now fallen below the 50-day moving average, suggesting downside pressure has increased. The previous breakout resistance of $199.61 is now acting as support in the short term, which we can see has already been tested on Monday following the global market sell-off. Since then, the stock has somewhat stabilised but caution should remain August and September tend to be the worst months of the year in terms of gains. As already mentioned, the key support in focus is the level of $199.61. A break below here would then shift the focus towards the 200MA as that could offer additional support. The 200MA currently, reads $190.01. Towards the upside, the 50MA is the near-term resistance. With a reading of $213.83, a strong close above would be required for a potential extension towards the following resistance of around $220.19. Looking at the technical indicators, they most definitely favour the downside for the time being, but they are now within the oversold territory. This may see a slowdown in selling over the next week or so before more economic data from the US.