Shares of Apple Inc. (NASDAQ:AAPL) have dropped to the important $138 level. This level has been support in the past and it may become so once again. That means there’s a chance the current selloff pauses or even ends.
As you can see on the following chart, $138 was support in October and again in late May. Each time the shares fell to this price, buyers stepped in and put an end to the downtrend.
Sometimes, a support or resistance level may stay intact for a long period of time. Some traders call this "market memory." The market "remembers" the support or resistance and stocks reverse their trends off them. That may be the case here.
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Photo: dennizn via Shutterstock
