Shares of Apple Inc. (Nasdaq: AAPL) are testing key support levels.



Chart Courtesy of StockCharts.com

Apple has been the market's darling for several years. Its iPod, iPhones, and now its iPad line of personal computers, smart phones, and music players have clearly captured the imagination of the public. And its billions in sales have been impressive.

But the stock has had its troubles lately, having topped out in June, near 280, and having been stuck in a trading range with the 230-250 area as support for several months.

Apple's problems with its newest phone's antenna didn't help. But neither is the competition from Motorola's Android line, and a host of other smart phones, including the now considered old-fashioned BlackBerry.

Is this the end of the line for Apple? Not likely. But rising competition won't make things easier either, especially if the company makes another blunder, such as the antenna gaffe of the last few weeks.

From a longer and broader term standpoint, Apple's performance is also important for the Nasdaq Composite and the Nasdaq 100 indexes, where it has a fairly heavy weight.

For now, it looks as if Apple is consolidating. But a move below that 230-250 support band would be a big negative.

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