Key Takeaways
- Apple shares are likely to remain on watchlists Wednesday after the stock briefly touched a new record high yesterday, the same day the tech giant unveiled the latest version of its Apple Intelligence-compatible iPad Mini.
- The stock broke above the upper trendline of an ascending triangle on Tuesday on the highest trading volume since Sept. 20, suggesting institutional investing.
- Investors should monitor key overhead levels on Apple’s chart around $237 and $270, while also watching crucial support levels during retracements near $233, $225, and $218.
Apple (AAPL) shares are likely to remain on watchlists Wednesday after the stock briefly touched a new record high yesterday, the same day the tech giant unveiled the latest version of its Apple Intelligence-compatible iPad Mini.
While Apple shares have gained more than 20% since the start of the year through Tuesday’s close, the stock has traded mostly sideways over the past three months amid concerns that a delayed rollout of its highly anticipated Apple Intelligence could lead to softer demand for the company’s flagship iPhone 16, which launched last month.
Apple shares were down slightly at around $233 in premarket trading Wednesday. The stock hit an all-time high of $237.49 in intraday trading yesterday.
Below, we take a closer look at Apple’s chart and use technical analysis to point out important price levels worth watching out for.
Ascending Triangle Breakout
After the 50-day moving average (MA) crossed above the 200-day MA to form a bullish golden cross signal in June, Apple shares continued trending higher for about a month before trading within an ascending triangle, a chart pattern that indicates a continuation of the stock’s longer-term uptrend.
Indeed, the price broke above the pattern’s upper trendline Tuesday on the highest trading volume since Sept. 20, suggesting institutional investing.
Looking ahead, investors should monitor several key overhead levels on Apple’s chart, while also keeping tabs on three crucial support levels that could come into play during retracements.
Key Overhead Chart Levels to Monitor
Firstly, follow-through buying this week could see the shares test the $237 level, where the stock would likely attract lots of interest around its record high.
A decisive volume-backed breakout above the all-time high (ATH) could fuel a bullish move up to the $270 area. We project this upside target using the measuring principle, a technique that calculates the distance between the ascending triangle’s trendlines near their widest point and adds that amount to the pattern’s top trendline. For example, we add $37 to $233, which equals $270.
Crucial Support Levels to Watch
During a retracement from current levels, investors should monitor how the price responds to the ascending triangle’s top trendline around $233, an area on the chart that could have potentially flipped from an area of prior resistance into future support.
Selling below this area could see the shares decline to around $225, where they may attract buying interest near the triangle’s lower trendline and a range of similar trading levels within the pattern between mid-July and early October.
A deeper pullback may see the shares revisit lower support near $218, a location where investors may seek entry points around a trendline joining several peaks and troughs that formed on the chart between June and September.
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As of the date this article was written, the author does not own any of the above securities.
