Key Takeaways
- Apple shares are likely to remain in focus ahead of a Sept. 9 event where the tech giant is expected to unveil the iPhone 16 with AI capability, as well as new versions of the Apple Watch and AirPods.
- In other news, the tech giant announced late Monday that it will replace long-time CFO Luca Maestri on Jan. 1 with Kevan Parekh, Apple’s current vice president of financial planning and analysis.
- After a recent correction, Apple shares encountered buying interest near the top trendline of a broad ascending triangle, a chart pattern that projects a continuation of the stock’s longer-term uptrend.
- Investors should monitor important lower price levels in Apple shares around $218 and $207, while watching key higher price levels near $233 and $267.
Apple (AAPL) shares are likely to remain in focus ahead of a Sept. 9 event where the tech giant is expected to unveil the iPhone 16 with artificial intelligence (AI) capability, as well as new versions of the Apple Watch and AirPods. Investors are also digesting news late Monday that the company will replace long-time Chief Financial Officer (CFO) Luca Maestri on Jan. 1 with Kevan Parekh, Apple’s current vice president of financial planning and analysis.
Although Apple shares trade just 4% below their record high, the tech giant faces increasing competition in the smartphone market from Samsung (SSNLF) and Alphabet’s (GOOGL) Google, both of whom recently announced devices with AI integration and other high-end specifications.
Below, we take a closer look at Apple’s chart and use technical analysis to locate key price levels that investors will likely be watching.
Successful Retest of Ascending Triangle
Since recording their record high in mid-July, Apple shares fell as much as 17% before finding buying interest near the top trendline of a broad ascending triangle, a chart pattern that projects a continuation of the stock’s longer-term uptrend. Moreover, the 50-day moving average (MA) crossed above the 200-day MA in June to generate a golden cross, a bullish signal indicating higher prices.
Indeed. since bottoming out earlier this month the price has recovered around 16% and reclaimed the 50-day MA, though most of the move has occurred on below-average volume, potentially pointing to a lack of conviction from larger market players.
Looking ahead, investors should keep a close eye on several important price levels on Apple’s chart.
Lower Price Levels to Monitor
Initial profit-taking at current levels could see the shares decline to around $218, an area just below the 50-day MA where they may find support near a trendline joining the June peak and July trough.
Further downside may lead to a retest low the $207 level, a location on the chart where investors could seek buy-the-dip opportunities near the stock’s June 11 breakout close, which also closely aligns with the low of a minor pullback later that month.
Higher Price Levels to Watch
Ongoing bullish momentum could propel the shares to $233, where they may encounter overhead selling pressure around several price points positioned just below the stock’s record high.
To forecast a price target above Apple’s all-time high (ATH), investors can use the measuring principle. To do this, we calculate the distance between the ascending triangle’s lower and upper trendlines near their widest point and add that amount to the breakout area. For instance, we add $70 to $197, which projects a target of $267.
Apple shares fell 0.3% to $226.50 in extended trading Monday.
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As of the date this article was written, the author does not own any of the above securities.