Watch These Apple Price Levels as Stock Slides After Trump Tariff Announcement

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.

Descending Channel’s Lower Trendline in Play

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.

Major Support Levels to Watch

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.

A decisive close below this level could trigger a drop to $197. Investors may view this region on the chart 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.

Important Resistance Levels to Monitor

During recovery efforts, investors should keep track of the $237 level. This location, currently positioned just below the descending channel pattern’s upper trendline, 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.

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