In an almost perfect “buy the rumor and sell the news” fashion, Apple (AAPL​) stock has sold off more than six percent since the iPhone maker announced its new lineup of smartphones on Sept. 12.

It was a classic scenario because we already knew what Apple was going to announce – almost all the details had been leaked online in the months leading up to the big announcement. The stock rallied as we approached the event and then tumbled as the news came out. Now Apple’s stock is trading at a key support level.

Earlier this year, shares jumped after the company beat earnings expectations for its fiscal first quarter. Those results were announced on Jan. 31, where our green trend line begins on the chart. From that point, the stock has found a new trend, making higher highs and higher lows.

That’s what we want to see continue, an upward trend. If that changes, then Apple stock's rise is in jeopardy. But until that happens, you have to follow the trend, and right now, Apple’s stock is trending higher and set to bounce off a key support level.

Take a look:

The green trend line formed when the pullback in June/July bottomed and turned higher creating the trend from the gap earlier this year to that point. This will be the first test of that trend line, but if it holds, it could send Apple stock back to its all-time high set on Sept. 1, which would be a 10 percent climb from here.

The Bottom Line

If Apple’s stock holds above this trend line, that means the trend continues. This uptrend could easily send shares back toward their all-time high. For that to happen, they would need to rally 10 percent from current prices.

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