As long as shares of Apple Inc. (NASDAQ:AAPL) hold above $143, they should be okay. They may even form a new uptrend. But if this important level breaks, shares could make a rapid and large move lower.
Support is a large group of buyers looking to pay the same price. At support levels, there is more than enough demand to absorb all of the shares the sellers have. This has been the case with the $143 level for Apple’s stock.
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If the level breaks, meaning the stock trades below, it will show that the buyers who created the support are gone. With this demand taken off of the market, sellers will have to accept lower prices. This could cause a downtrend to form.
