Apple (AAPL) shares are set to be a focal point at the beginning of the holiday-shortened trading week following a significant drop on Friday. This decline was triggered by President Donald Trump's warnings regarding potential hefty tariffs on the tech giant unless it commits to manufacturing iPhones within the United States. In a post shared on Truth Social, Trump stated that he had communicated to Apple CEO Tim Cook that all iPhones sold in the U.S. must be produced domestically. He added, “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
Trump's comments represent a continuation of his administration's efforts to encourage Apple to refrain from expanding iPhone production in India while simultaneously reducing its manufacturing footprint in China. Notably, China faces some of the highest import tariffs among U.S. trading partners. Until now, Apple's imports into the U.S. have largely avoided tariffs, thanks to exemptions granted during the Trump administration for smartphones, computers, and other consumer electronics.
Following these comments, Apple shares experienced a 3% decline on Friday, bringing the stock price to approximately $195. This marks the eighth consecutive session of losses for the tech giant, which has seen a staggering 22% decrease in value since the start of 2025. The stock's downturn stands in stark contrast to the performance of its peers in the 'Magnificent Seven,' as investor sentiment towards Apple has soured, primarily due to its considerable exposure to tariffs.
In light of these developments, let’s delve deeper into Apple's stock chart and utilize technical analysis to identify critical price levels that investors should monitor. Apple shares have been trending lower since reaching an all-time high in late December, forming a descending broadening formation. Throughout this period, the stock has touched both the upper and lower trendlines of this pattern multiple times.
Recently, selling pressure has intensified near the upper trendline of the formation and the 50-day moving average. This movement has coincided with the relative strength index (RSI) dipping below its neutral threshold, indicating a weakening price momentum. Furthermore, a significant technical signal occurred in early April when the 50-day moving average crossed below the 200-day moving average, a phenomenon known as a death cross, which typically suggests further declines.
Investors should pay close attention to major support levels that could influence Apple’s stock price in the near future. Should the shares continue to weaken from their current position, an initial support level may emerge around $193. This price aligns with this month's low and coincides with a narrow consolidation period seen on the chart during the latter half of May last year.
If the bulls fail to protect this support level, it may pave the way for a retest of lower support at $169. This area could present an attractive buy-and-hold entry point for investors, especially near April’s prominent low and after a brief sideways drift before the significant gap above the 200-day moving average observed last May.
Conversely, should Apple shares begin to rally, investors may see the price climbing toward a crucial resistance level around $215. This zone could experience selling pressure, as it corresponds with a trendline that connects various peaks and troughs on the chart dating back to June of last year.
A more bullish movement in Apple’s stock could potentially drive a rally towards around $237. Investors who acquired shares at lower prices may consider locking in profits in this range, where notable peaks were established last July and October.
In summary, as Apple navigates the complexities of manufacturing and tariff implications, investors should remain vigilant. Monitoring these critical support and resistance levels can provide valuable insights into potential trading strategies in the coming weeks.
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