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Apple shares moved lower on Monday morning, tracking a broader decline for US stocks, but the company remains within striking distance of becoming the first ever to reach a $4 trillion market capitalization.
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A bearish evening star pattern has formed over the last three trading sessions, indicating a potential reversal in the stock.
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Investors should watch key support levels on Apple's chart around $237 and $218, while also monitoring a chart-based bullish price target near $278.
apple (AAPL) shares moved lower on Monday morning, tracking a broader decline for US stocks, but the company remains within striking distance of becoming the first ever to reach $4 trillion market capitalization.
Last Thursday, the company set a new record above $260 after Wedbush analysts led by Apple bull Dan Ives said that artificial intelligence (AI) call sets the tech giant for “a golden age of growth” in 2025. This week, investors will be watching if Apple shares can reach $264.62, the price needs to reach a $4 trillion market cap.
The company first unveiled its AI software marketed as Apple Intelligence back in June, but the rollout has been slow, with investors watching to see if a major upgrade cycle to access the features is drive sales 2025.
Apple shares were down 1.2% at $252.50 in midday trading on Monday. Since the start of the year, Apple shares have gained around 31%, outperforming the S&P 500's An increase of 24% over the same period.
Below, we take a closer look at Apple's chart and apply technical analysis to identify several important price levels that investors may be watching.
Apple shares have trended higher since breaking out above the bullish ascending triangle formed earlier this month. However, it is bearish star pattern at night has formed on the iPhone maker's chart over the past three trading sessions, indicating a potential reversal.
Moreover, as the stock climbed to an all-time high last week, the relative strength index (RSI) make relatively shallow highs to create bearish diverta technical signal pointing to a weakening of price momentum.
It is also worth noting volume spikes in the stock on June 21, September 20, and December 20, these dates coinciding with triple witch days, suggesting a portfolio re-balancing from larger market participants, such as institutional investors and hedge funds.
Let's identify a key support levels to watch if the stock is reversed, but also predict bullish price target monitor whether the shares continue their longer term rise.
The first level to the eye is about $237. This placement on the chart could attract buying interest near the 50 day moving average and the upper trend line of the ascending triangle, a field that can turn before resistance in future support.