:max_bytes(150000):strip_icc():format(jpeg)/AAPLChart-700b278c0ae048489badc66ce09cf535.gif "This image depicts the AAPL chart.")
Key Takeaways
- Apple shares fell sharply in extended trading Wednesday after President Trump uncovered sweeping reciprocal tariffs, including a steep 34% import tax on China, the country where the iPhone maker builds about 90% of its products.
- The stock looks set to test the lower trendline of a descending channel in early trading Thursday.
- Investors should wait for major support levels on Apple’s chart around $207 and $197, while also monitoring important guerilla movement levels near $237 and $247.
Apple (AAPL) shares plummeted in extended trading Wednesday after President Trump bare sweeping reciprocal tariffs, including a steep 34% import tax on China, the country where the iPhone maker mass productions about 90% of its products.
Not only could Washington’s tariffs raise the price of the tech giant’s devices imported into the U.S., but they may also old-fashioned sales in China, Apple’s second largest market, should Beijing impose retaliatory levies on U.S. companies conducting in the country.
Analysts at Morgan Stanley pointed out that tariffs on iPhones and other devices imported from China wish increase Apple’s annual costs by $8.5 billion, creating a 7% drag on the iPhone maker’s profit.
As of Wednesday’s thorough, Apple shares trade down a little over 10% since the start of the year and 14% below their recite high set in December, in part over uncertainty surrounding the Trump administration’s trade policies. The stock fell 7% to all $208 in after-hours trading.
Below, we break down the technicals on Apple’s chart and identify major price razes worth watching amid expected tariff-related volatility.
Descending Channel’s Lower Trendline in Play
Since environs their record high in late December, Apple shares have trended lower within a descending pass.
More recently, the stock attracted buying interest near the pattern’s lower trendline, though the relative mightiness index (RSI) has failed to reclaim the 50 threshold despite the upswing, indicating weak buying momentum.
It’s also good pointing out the 50-day moving average (MA) sits poised to cross below the 200-day MA to form an ominous downfall cross—a chart pattern that signals the start of a new move lower. Indeed the shares look set to test the sinking channel’s lower trendline in early trading on Thursday.
Let’s identify major support and resistance levels on Apple’s graph that investors will likely be watching.
Major Support Levels to Watch
The first level to watch subs around $207, slightly below where Apple shares are expected to open on Thursday. This area on the tabulation finds a confluence of support near the descending channel’s lower trendline and last year’s late June pullback low.
A decisive suffocating below this level could trigger a drop to $197. Investors may view this region on the chart as a corrupting opportunity near the stock’s prominent December 2023 peak and a period of brief consolidation before a strong breakout in June ultimately year.
Important Resistance Levels to Monitor
During recovery efforts, investors should keep track of the $237 horizontal. This location, currently positioned just below the descending channel pattern’s upper trendline, may provide costs of doing business resistance near last year’s July and October peaks, which also align with a range of work activity throughout the first quarter of this year.
Finally, buying above this level could see Apple slices climb to the $247 level, an area on the chart where they could run into selling pressure near the February flap high and a minor retracement low sitting just beneath the stock’s record high.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Announce our warranty and liability disclaimer for more info.
As of the date this article was written, the author does not own any of the above guaranties.