Watch these Apple stock price levels as the iPhone 16 launch event set for Monday

Apple shares are up about 13% from their August low

Key recommendations

• Apple stock is likely to be in the spotlight on Monday as the tech giant hosts its “Glowtime” product launch event, where it is expected to unveil its new AI-powered iPhone alongside other devices and provide additional information about major software updates.

• Since hitting the bottom of a correction in early August, Apple shares have risen about 13% heading into Monday’s presentation, raising the possibility of a news selling event.

• Investors should monitor important support areas on Apple’s chart at $218, $207, and $196, while watching how the stock reacts to key overhead resistance at $233.

apple (AAPL) shares are likely to be in the spotlight on Monday as the tech giant hosts its “Glowtime” product launch event, where it is expected to unveil its new artificial intelligence (AI)-powered iPhone alongside other devices and provide additional information about major software updates, including Apple Intelligence-enabled iOS 18.

Since hitting the bottom of a correction in early August, Apple shares have risen about 13% heading into Monday’s presentation, raising the possibility of a news selling event. Indeed, investment bank Morgan Stanley recently pointed out that the company’s shares tend to underperform the S&P 500 on the day of an iPhone launch event, but modestly outperform the market over the next three months.

Below, we’ll take a close look at Apple’s chart and use technical analysis to identify key price levels that investors should keep an eye on amid the iPhone maker’s biggest event of the year.

High prices vary after reaching a new record

After hitting a new high in mid-July, the stock bounced back as much as 17% to a breakout zone in early June before spending most of August retrieving a significant portion of that decline.

More recently, the price ended Friday’s session below its 50-day moving average (MA), although trading volumes remain light, indicating little conviction behind last week’s weakness. Apple shares fell 0.7% to $220.82 on Friday amid a broader decline in technology stocks.

Going forward, investors should keep a close eye on several important price levels that could come into focus.

Key support levels to watch

Initial selling could see shares test the $218 area, a chart location that finds support from a trendline connecting a range of trading activity positioned around the June and July highs.

Failure to hold this level could trigger a decline to $207, where investors can place limit buy orders near the close of the June 11 candlestick, an area that also closely aligns with the June pullback.

The story continues

A more significant move lower could see shares retest last month’s low at $196, where bargain hunters could look for buying opportunities near the initial breakout area that could move from resistance to support and it is also in close proximity to the rising 200-day MA. .

Important resistance level to monitor

If Apple shares hit a bid leading into this week’s event, they could initially face general resistance around $233, an area where investors could look to take profits near a range of trading levels similar positions just below the stock’s all-time high (ATH). .

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At the time of writing, the author does not own any of the above securities.

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