Apple (AAPL) has officially entered correction territory as the company’s stock has lost more than 12% of its value. It is currently trading at a 6 months low of $114. 87 per share, and 14.62% below the April 28, 2015 record close of $134.54. According to a recent research by Bank of America (BAC), the tech giant’s stock has been pressured by economic slowing in China, its biggest growth market for the iPhone, along with the time required for other initiatives, such as Apply Music, Apply Pay and Apple Watch, to ramp.
What’s really making investors jittery about AAPL’s recent trading patterns, is the name dropping below another chart threshold, the closely-watched 200-day MA (located at the $125.64 level), which many chart technicians use as a guide to a stock’s long-term trend. Bloomberg noted that Apple traded above its 200-day MA during the past 471 sessions. The last time the stock closed below its threshold was in September 2013.
AAPL closed Wednesday at $114.88 per share after declining as low as $113.25 the previous session. Shares of the Cupertino, California-based company have fallen 10 of the past 11 days.