Key Takeaways
- Apple shares are expected to be in the spotlight after the closing bell on Thursday, when the iPhone maker releases its highly anticipated fiscal second quarter results.
- Wall Street is closely watching the tech giant’s guidance for the current quarterly to determine the impact of tariffs and price increases on consumer demand.
- The stock trades significantly above this month's low, though the relative strength index signals lackluster price momentum ahead of earnings.
- Investors should monitor key support levels on Apple's chart around $169 and $157, while also watching crucial resistance levels near $220 and $237.
Apple (AAPL), which makes iPhones, is expected to release its highly anticipated fiscal results for the second quarter after Thursday’s closing.
Wall Street will pay close attention to the tech company’s guidance for this quarter to see what impact tariffs and price increases may have had on the demand for its devices.
Investors are also interested in updates regarding recent reports that Apple intended to produce the majority of its U.S. sold iPhones in India before the end of 2026. The company is trying to mitigate the risks associated with steep import duties imposed by the Trump Administration on China, where Apple reportedly produces up to 90% its iPhones.
Apple shares are down 16% year-to-date as of Friday’s closing but have recovered almost 25% from the lows this month as investors assess how the company will navigate tariff challenges.
We break down Apple’s weekly chart to identify key price levels and analyze the technicals.
Price momentum is lagging ahead of earnings
Apple shares continue to rise after a dramatic intraday reverse at the 200-week Moving Average (MA) on volume above average earlier this month.
While the relative strength indicator (RSI) is moving upwards, it remains just below 50, indicating a lackluster momentum in the price.
Investors will be watching key levels of support and resistance on Apple’s chart.
Monitor the Key Support Levels
The first area that needs to be monitored is around $169. Retracements at this level would likely attract strong interest in the near the low of this month. This is also close to the peak of August 2022 and the troughs that occur in October 2023, and April 2024.
The bulls’ inability to defend this important technical level opens the way for a drop towards lower support at $157. Investors may want to look for entry points near the horizontal line connecting several peaks and valleys on the chart from September 2021 to March 2023.
Important Resistance Levels to Watch
In the event of a rally it is worth keeping an eye out for the $220 area, which is currently just below 50-week MA. This area could be a selling pressure for the shares, as it is near the price action on a chart that stretches back to June of last year.
Apple’s stock could return to $237 if further buying continues. Investors who bought shares at lower prices could look for profit-taking opportunities near the July and October peak of last year.
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