The Key Takeaways
- Apple shares, which yesterday saw their worst one-day fall since August 1, following the news that Apple lost its top spot as China’s biggest smartphone seller in 2013, will be the main focus for investors on Friday.
- Stock fell below lower trendline in ascending triangle. This raised the risk of significant break.
- Investors should watch key support levels on Apple's chart around $218 and $207, while also monitoring important resistance levels near $235 and $250.
Apple shares (AAPL) will be the main focus this Friday. Yesterday, they experienced their most significant one-day fall since August. The news was that Apple had lost its coveted title as China’s biggest smartphone seller.
Canalys’ data shows that the iPhone manufacturer’s 2024 sales in India have fallen by 17 percent, the largest drop since 2016. Vivo and Huawei also gained additional market shares. Due to regulatory obstacles, Apple’s new iPhones in China do not include the recently released artificial intelligence features. This is affecting sales and customers are turning to other devices.
Apple shares opened Friday’s trading at $231, up by 1.2% after falling 4% the day before. Stocks are down by 9% in 2025 after rising 30% in 2018.
Below, we take a closer look at Apple’s chart and point out important price levels worth watching after yesterday’s selling.
Breakdown of the Ascending Triangle
Apple’s shares are trending sharply down since an evening star pattern marked last month the all-time highest (ATH). The selling pressure increased on Thursday as the stock price fell below the trendline at the bottom of the ascending triangle. This raised the risk of a major breakdown.
Also, it’s worth noting that yesterday the volume of the stock was at its highest since the December triple witching trading sessions. This indicates that major market participants participated in the sale.
Apple’s chart will be analyzed using technical analysis in order to find the key support and opposition levels. Investors are going to pay attention to these levels over the next few weeks.
The Key Support Levels To Track
This first area of concern is located around $218. The trendline connecting a series highs and lowers between June and September to the 200-day moving mean provides support at this location.
It also corresponds to a projected down target formed by a bar pattern that overlays the previous major correction of July and August in last year’s stock with last month’s record high.
Apple’s shares could return to lower support levels at $207 if the bulls are unable to hold this level. Investors can look to buy in the area around the pullback low of June 2024, as it is also close to several prices located just above the August bottom.
Keep an eye on the Resistance Levels
Investors should be on alert for any potential retest near the lower trendline of the ascending triangular pattern and the prominent peaks which appeared in October and July last year.
Apple’s shares could reach around $250 if they move above the top trendline of the triangle. Investors that purchased Apple stock lower may want to take profits near the pause of the strong upward trend in December.
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