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Apple shares have seen a 5% dip as investors were met with disappointing sales data, which stemmed from increasing competition from Huawei and Xiaomi. The premium phone selection offered by Huawei is helping capture the Chinese market, putting pressure on Iphone sales there. Further headwinds have arisen from issues regarding Apple’s partnership with Goldman Sachs on the Apple Card. Apple is now going through discussions with Barclays to replace their existing parter in the credit card partnership.

Shares are now trailing under the 50-day moving average at the $230 mark. This next support level for the stock will sit on the $220 mark which is just above the 200-day moving average. If this level is reached, further selling will ensue. The momentum of the stock is therefore very reliant on Apple’s earning report on Janurary 30. Whilst Apple stocks have a long term bullish outlook, it is important to be diligent about the short term bearish trend.