Apple Inc. (Nasdaq: AAPL)

When the market opened for trading the day after Christmas on December 26, 2017, shares of Apple gapped down and traded for the most part of the day in a tight range. The tight range may have been caused because Apple is at a critical technical level.

Technical analysts use this level to analyze stocks and other types of investment price charts, as well as indicators when they make their buy and sell decisions and recommendations. And today, Apple did something that many stocks do when they run into trouble.

The shares gapped down almost exactly onto the 50-period moving average price level. This is a key level that many mutual fund managers, traders, and hedge fund managers look at as a meaningful longer-term support level.  

Usually, if a stock is below it, shares are considered to be bearish and above it shares considered to the bullish. Apple is now testing that level and all eyes will be on it as we end the year and head into the new year of 2018.

Shares closed the regular trading session at $100.57 which was down 2.54%. The aftermarket saw little action but the shares wound up closing at $170.60 which was up $0.03 in the aftermarket.

Given that Apple pays a hefty dividend of 1.48% annually, it will be interesting to see if new buyers who are looking for excellent and safe dividends step in and buy the shares to be able to participate in the dividend payments.

Some Apple iPhone X Estimates by Analysts

JL Warren Capital expects Apple to ship 25 million iPhone X units as consumers baulk at the “high price” and “lack of interesting innovations.”

Chicago-based Loop Capital estimated in a note last week 40 million to 45 million first-quarter shipments.

Jefferies forecast about 40 million first-quarter sales.

Rosenblatt Securities foresees first-quarter production estimate of 35 million units.

-Reuters

The Price Chart

The above price chart shows Apple on a daily time frame. As you can see in the price chart shares have respected the longer-term green support line. However, the shaded area indicates where Apple opened today at much lower levels and then traded range-bound until the close at 4 p.m.

Note the key technical level right near the 50 period moving average in yellow dots. This is the key level that many eyes will be watching between now and the end of the year.