In This Article:
Key Takeaways
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Apple shares will be in focus on Friday after recording their largest one-day drop since early August yesterday following news that the tech giant lost its position as China’s largest smartphone seller last year.
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The stock fell decisively below the lower trendline of an ascending triangle, raising the possibility of a significant breakdown.
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Investors should watch key support levels on Apple's chart around $218 and $207, while also monitoring important resistance levels near $235 and $250.
Apple (AAPL) shares will be in focus on Friday after recording their largest one-day drop since early August yesterday following news that the tech giant lost its coveted position as China’s largest smartphone seller last year.
Data from technology research firm Canalys showed the iPhone maker’s 2024 shipments slumped 17% in the country, their largest decline since 2016, as domestic rivals Vivo and Huawei both captured additional market share. The company’s latest iPhones sold in China aren’t equipped with its recently launched artificial intelligence (AI) features due to regulatory hurdles, weighing on sales as customers turn to competitors’ devices for alternatives.
Apple shares were up 1.2% at $231 in the opening minutes of trading Friday, after falling 4% yesterday. The stock is down 9% so far in 2025, after gaining 30% last year.
Below, we take a closer look at Apple’s chart and point out important price levels worth watching after yesterday’s selling.
Ascending Triangle Breakdown
Since an evening star pattern marked the stock’s all-time high (ATH) last month, Apple shares have trended sharply lower. Selling pressure intensified on Thursday, with the price falling decisively below the lower trendline of an ascending triangle, raising the possibility of a significant breakdown.
It’s also worth pointing out that the stock recorded its highest volume yesterday since December’s triple witching trading session, indicating that larger market players participated in the sell-off.
Let’s apply technical analysis to Apple’s chart to identify crucial support and resistance levels that investors will likely be watching in the coming weeks.
Key Support Levels to Track
The first lower point of interest on the chart sits around $218. This location provides a confluence of support from a trendline that links a series of highs and lows from June to September with the upward sloping 200-day moving average.
This location also corresponds with a bars pattern projected downside target that takes the stock’s prior major correction from July to August last year and overlays it from last month’s record high