Shares of Apple Inc. (NASDAQ:AAPL) may be about to fall even further after breking an important support level.
Support is a large group of investors who are looking to buy shares at, or close to, the same price. In this case, it's $157.
At support levels, there is more demand for a stock than there is supply. This is why sell-offs tend to end or pause when they reach them.
But if a support level breaks, meaning the price moves below it, there's a good chance a new downtrend will form. This is because the breaking of the level means that the buyers have either canceled or finished their orders.
With this demand for the stock out of the way, sellers will be forced to accept lower prices. This could force Apple's stock into a new downtrend.
To learn more about trading, check out the new Benzinga Trading School.
