Apple Stock Slides: Key Levels to Watch

Apple Inc. (AAPL) shares tumbled in after-hours trading Wednesday following President Donald Trump’s announcement of sweeping reciprocal tariffs, including a steep 34% import tax on goods from China. This move sent shockwaves through the tech sector, with Apple’s stock falling 7% to around $208. The new tariffs, which come on top of the previously announced 20% tariff, threaten to significantly impact Apple’s supply chain and bottom line.

The tariffs are particularly concerning for Apple, as China is the manufacturing hub for about 90% of its products. The new 34% tariff, combined with the existing 20% tariff, brings the total rate on Chinese goods to 54%. This could lead to increased costs for Apple, potentially affecting its profitability and stock performance.



Investors should keep a close eye on several key support and resistance levels as Apple’s stock navigates this volatile period. The first support level to watch is 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. A decisive close below this level could trigger a drop to $197, where investors may view this region as a buying opportunity near the stock’s prominent December 2023 peak and a period of brief consolidation before a strong breakout in June last year.

On the resistance side, the $237 level is positioned just below the descending channel pattern’s upper trendline. This location may provide overhead resistance near last year’s July and October peaks, which also align with a range of trading activity throughout the first quarter of this year. Finally, buying above this level could see Apple shares climb to the $247 level, an area on the chart where they could run into selling pressure near the February swing high and a minor retracement low sitting just beneath the stock’s record high.



The technical indicators also suggest a challenging environment for Apple’s stock. The relative strength index (RSI) has failed to reclaim the 50 threshold despite the upswing, indicating weak buying momentum. Additionally, the 50-day moving average (MA) is 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.

In summary, Apple’s stock is facing significant headwinds due to the new tariffs, and investors should closely monitor the key support and resistance levels to make informed trading decisions. The $207 and $197 support levels, along with the $237 and $247 resistance levels, will be crucial in determining the stock’s near-term direction. As Apple navigates this challenging environment, its historical ability to secure tariff exemptions and strategic actions such as supply chain diversification, cost management, and innovation will be critical in mitigating the impact on its bottom line.