Apple Stock Hits 6-Week High After Lagging Big Tech Peers in Q2—Watch These Key Levels

Apple (AAPL) shares bucked a broader downturn for technology stocks on Tuesday, rising for the third straight day to their highest level in six weeks. 

The rally to start the week follows a report that the iPhone maker could use OpenAI or Anthropic to power the next generation of Siri. The company, which has had delays rolling out the latest installment of its voice assisted technology, held talks with both companies about relying on their AI models instead of in-house technology, Bloomberg reported on Monday.

Apple shares have faced downward pressure this year amid concerns the company is falling behind its big tech rivals on the AI development front. The stock fell nearly 8% in the second quarter, making it the only Magnificent Seven member to lose ground in the period. Since the start of the year, Apple shares have slumped 17%, significantly underperforming the S&P 500’s 5% gain. On Tuesday, the stock rose 1.3% to around $208.

Below, we take a closer look at Apple’s chart and use technical analysis to identify key price levels that investors will likely be watching.

Descending Triangle Breakout

Apple shares broke out from a descending triangle and closed above the 50-day moving average in Monday’s trading session, potentially setting the stage for an upside trend reversal. What’s more, the relative strength index confirmed strengthening price momentum, with the indicator registering its highest reading since late February.

However, bears will argue that the stock remains in an established downtrend after the 50-day MA crossed below the 200-day MA back in April to form a “death cross,” a chart signal pointing to lower prices.

Let’s identify two key areas on Apple’s chart to watch if the stock moves higher and also identify support levels worth monitoring during potential retracements.

Overhead Areas to Watch

The first overhead area to watch sits around $214. This level may provide overhead resistance near the early-May peak, which also closely aligns with troughs that developed on the chart in March and September.

A decisive close above this level could see the shares climb toward $235. Investors who have accumulated the stock at lower prices may look for exit points in this location near a trendline that connects a range of corresponding price action on the chart between July and March.

Support Levels Worth Monitoring

During retracements in the stock, it’s initially worth monitoring the $193 level. The shares could attract buying interest in this area near the descending triangle’s lower trendline.

Finally, a convincing breakdown in Apple shares below the descending triangle could trigger a steeper decline to around $180. Investors may look for entry points in this region that align with a pullback to the 200-day MA in May last year following a prominent stock gap.

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As of the date this article was written, the author does not own any of the above securities.