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Key Highlights
- Apple shares increased once more on Tuesday, effectively avoiding a significant sell-off of technology stocks that occurred earlier this week.
- After reaching a record high at the close of December last year, the shares have declined by 16%, yet found support close to the 200-day moving average earlier last week.
- On Tuesday, Apple shares surpassed the critical resistance level of $235, and investors should keep a close eye on the $260 price threshold. Important support levels are approximately $218 and $207.
Apple (AAPL) stocks experienced a notable rise on Tuesday, successfully sidestepping the substantial tech stock sell-off from earlier in the week.
While AI-related stocks fell sharply on Monday due to a sophisticated AI model created by the Chinese startup DeepSeek that can rival leading U.S. models at reduced costs, Apple’s stock appreciated as investors perceived this development as not entirely unfavorable for the iPhone manufacturer.
Apple’s success depends on creating sufficiently robust devices to operate intricate AI models, indicating that more affordable and efficient AI could directly enhance the company’s earnings. Furthermore, Apple unveiled its AI-enabled phone last June, making relatively fewer investments in AI compared to its tech industry rivals. Whats Fueling the Rise in XRP, LINK, BONK, Jasmy, and Other Altcoins?
On Tuesday, Apple shares rose by 3.7%, closing at $238.26, as the broader market recovered from Monday’s downturn. The company is expected to publish its quarterly earnings report after the market closes on Thursday.
Next, we will examine the technical indicators on Apple’s chart and identify significant price levels to observe.
200-Day Moving Average Offers Support
Since attaining a record high at the end of December last year, Apple shares have decreased by 16%, but found support near the 200-day moving average earlier last week.
Additionally, the recent uptick in the stock aligns with the relative strength index (RSI) rising from oversold conditions, affirming an enhancement in price momentum. Three Justifications Why the Cost of Shiba Inu Coin Might Ascend by 60%
It is significant to note that the market’s counter-trend shift on Monday took place with trading volumes that were above the average, suggesting institutional purchasing activity.
Important Resistance Zone to Observe
Apple’s shares surpassed a crucial resistance zone at the close on Tuesday. As this trading phase commenced, $235 was identified as a potential point for selling pressure due to its closeness to a trend line that links several peaks from July to October. This point also closely aligns with the 38.2% retracement level when utilizing Fibonacci retracement from last month’s peak to this month’s trough.
At present, the stock has just finished above this point, and the price may ascend to approximately $260, which is a prominent area on the chart that could draw considerable attention, near the stock’s historical peak. Notably, this position roughly corresponds with the price target anticipated from the upward movement since last August, based on this month’s low.
Observing Key Support Levels
During a retracement, investors should focus on how the price reacts to a retest of this month’s low at $218. This zone is backed by the 200-day moving average and resonates with a trend line connecting various peaks and troughs dating back to mid-June of the previous year.
Ultimately, if a more substantial decline occurs, Apple’s shares could fall to the $207 mark. Investors aiming to enhance their entry points might look for buying chances near the June pullback low, which also closely matches several price levels just above the early August low.
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As of the date of this article, the writer does not possess any securities mentioned above.
