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Apple shares fell sharply in extended trading Wednesday after President Trump unveiled sweeping reciprocal tariffs, including a steep 34% import tax on China, the country where the iPhone maker manufactures about 90% of its products.
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The stock looks set to test the lower trendline of a descending channel in early trading Thursday.
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Investors should watch major support levels on Apple’s chart around $207 and $197, while also monitoring important resistance levels near $237 and $247.
Apple (AAPL) shares plummeted in extended trading Wednesday after President Trump unveiled sweeping reciprocal tariffs, including a steep 34% import tax on China, the country where the iPhone maker manufactures about 90% of its products.
Not only could Washington’s tariffs raise the price of the tech giant’s devices imported into the U.S., but they may also slow sales in China, Apple’s second largest market, should Beijing impose retaliatory levies on U.S. companies operating in the country.
Analysts at Morgan Stanley pointed out that tariffs on iPhones and other devices imported from China will increase Apple’s annual costs by $8.5 billion, creating a 7% drag on the iPhone maker’s profit.
As of Wednesday’s close, Apple shares trade down a little over 10% since the start of the year and 14% below their record high set in December, in part over uncertainty surrounding the Trump administration’s trade policies. The stock fell 7% to around $208 in after-hours trading.
Below, we break down the technicals on Apple’s chart and identify major price levels worth watching amid expected tariff-related volatility.
Since setting their record high in late December, Apple shares have trended lower within a descending channel.
More recently, the stock attracted buying interest near the pattern’s lower trendline, though the relative strength index (RSI) has failed to reclaim the 50 threshold despite the upswing, indicating weak buying momentum.
It’s also worth pointing out the 50-day moving average (MA) sits poised to cross below the 200-day MA to form an ominous death cross—a chart pattern that signals the start of a new move lower. Indeed the shares look set to test the descending channel’s lower trendline in early trading on Thursday.
Let’s identify major support and resistance levels on Apple’s chart that investors will likely be watching.
The first level to watch sits around $207, slightly below where Apple shares are expected to open on Thursday. This area on the chart finds a confluence of support near the descending channel’s lower trendline and last year’s late June pullback low.
