Apple Stock Plunges on Higher Margin Rules

(AAPL) shares fell more than four percent following news that margin requirements are being raised to 60 percent from 30 percent by COR Clearing.

The tech giant is down more than 20 percent from its record high of $705 in September and is trading back in bear market territory.

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Apple's chart is close to forming a 'death cross'- where the stock's 50-day moving average falls below the 200-day moving average. Technicians usually see the sign as a cue to sell. (See the chart below.)

Apple nears the 'Death Cross'

"It's one of the best names out there, but those people who think it's going to have a rocket ship ride to $1,000 may be mistaken because competition is coming in and with a market cap this large, the expectation is quite high for the name," said Colin Gillis, senior technology analyst at BGC Financial. "We'd like to collect premium on the name at these levels," The firm has a $600 price target and a "hold" rating on the company.

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