Apple shares are well into a correction, off more than 11 percent from their recent high, but a close technical analysis suggests that the iPhone maker hasn't hit bottom just yet.
We saw the stock fall more than 1 percent on Tuesday for a fifth-straight session, losing over 8 percent in that time alone. While there appears to be no significant technical damage done at this point, that kind of move is still quite notable for such a widely held stock.
Apple is essentially testing three support levels, as it tests its March closing lows (just above $165), its 200-day moving average ($165.73), and its trend line going back to mid-2016.
Therefore, any further meaningful decline would be somewhat negative on a technical basis. On Tuesday, the stock fell beneath its 200-day moving average, closing just off its session lows.
However, the more critical support level to watch is its February closing lows, at $155.15. A meaningful break below that level would definitely prove negative on a technical basis, but that's still another 5 percent below current levels.
As the market awaits the company's quarterly earnings next Tuesday after the bell, we'll be watching these levels for clues as to its next move.