We received a hand full of inquires on a trade in Apple long after its gap down after its earnings miss. We spoke about nothing on this chart is a screaming buy, and that it will more than likely push everyone out and cause the most pain before it can change its course.
Anyone who bought Apple starting in 2016 paid anywhere from $93 up to $111 per share going into the earnings announcement. All of these investors are staring at losing positions. The $93 area would be the line in the sand, for these investors to try to hold Apple above it and it tried for a few days and ultimately failed. Not too surprising, buying support can be a great trading strategy, except that when it is the most obvious, is ultimately when it will most likely fail.
Buying support In Jan,Feb,March were great low risk trades vs $93, good for a $18+ rally. Trying it down here the 2nd time around was not the best play, and traders are left being the bag holder as Apple hitting a new low.
Hero traders try to call tops and bottoms and end up becoming bag holders.