What you need to know
- Apple shares climbed again after they avoided the massive tech selling that started the week.
- Following a record-high in late December the stock has retraced up to 16%, before finding some support last week at the 200-day average.
- Apple shares were able to break above the key resistance level of $235, on Tuesday. Investors should be watching closely for $260. The key support levels lie near $218, and $207
Apple’s (AAPL), shares rose again on Tuesday, after avoiding a big sell-off in the tech sector at the start of the week.
Apple shares rose as investors realized that the AI stocks were not all bad.
Apple’s ability to succeed depends on its devices being powerful enough for complex AI models. Therefore, more cost-effective AI can directly affect the bottom line of the company. Apple has also invested less in AI than its tech giant rivals, despite announcing its AI-powered smartphone only last June.
Apple’s stock rose by 3.7% on Tuesday to $238.26 as the market rebounded from its Monday sell-off. After the closing bell of Thursday, Apple is expected to release its quarterly results.
Here, we analyze the chart of Apple and determine key levels for price.
Support for the 200-Day Moving average
Apple’s shares, which had hit a record-high in December, retraced up to 16% of their value before finding some support around the 200 day moving average early last week.
Similarly, the recent price turnaround coincides with a relative strength index (RSI), which has climbed out of the oversold zone, confirming an improving momentum. Also, it’s worth noting Monday’s move against the market was on a volume of trading above normal. That signals institutional buying.
The Key Overhead Area
Apple’s shares ended Tuesday above a major area of support. As the session began, it was thought that $235 would be a potential selling level as it is near the trendline which connects the multiple peaks of the chart from July to October. When using the Fibonacci tool to apply the level from the previous month’s highest point to this month’s lowest, the area also corresponded closely with the 38.2% Fibonacci Retracement.
After the closing price of the stock was just above this level, it is possible that the price will climb up to $260. This region in the chart, near the all-time stock high, should attract a lot of attention. This area also aligns roughly with a projected price target based on a bars pattern. It overlays the trending upward movement from last August and compares it to this month’s low.
Monitoring Support Levels
Investors should watch how price reacts to the retesting of this month’s low at $218. Support for the area comes from the 200-day MA rising and the trendline linking several peaks on the chart going back to June last year.
Apple could also experience a further decline, with shares falling to $207 in the end. Investors looking for entry points should look at the pullback low of June, which is also close to several price levels just above the August early trough.
Comments, opinions, or analyses on Investopedia should only be used for informative purposes. Read our warranty and liability disclaimer for more info.
The author of this article does not currently own any securities listed above.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
