Watch these Apple stock price levels ahead of the expected iPhone 16 launch

Apple stock (AAPL) is expected to remain in focus ahead of a September 9 event where the tech giant is expected to unveil the artificial intelligence (AI)-powered iPhone 16, as well as new versions of the Apple Watch and AirPods. Investors are also digesting news late Monday that the company will replace longtime chief financial officer (CFO) Luca Maestri with Kevan Parekh, Apple’s current vice president of financial planning and analysis, effective Jan. 1.

Although Apple stock is trading just 4% below its record high, the tech giant is facing increasing competition in the smartphone market from Samsung (SSNLF) and Alphabet’s (GOOGL) Google, both of which recently announced devices with AI integration and other high-end specs.

Below, we take a closer look at Apple’s chart and use technical analysis to identify key price levels that investors are likely to keep an eye on.

Successful retest of the ascending triangle

Since hitting a record high in mid-July, Apple shares have fallen as much as 17 percent before finding buying interest near the upper trendline of a broad ascending triangle, a chart pattern that predicts a continuation of the stock’s longer-term uptrend. In addition, the 50-day moving average (MA) crossed above the 200-day MA in June, creating a golden cross, a bullish signal that suggests higher prices ahead.

In fact, the price has recovered around 16% since hitting a low earlier this month, reclaiming the 50-day moving average. However, much of the move has occurred on below-average volume, potentially indicating a lack of conviction from larger market participants.

Looking ahead, investors should keep a close eye on several key price levels on the Apple chart.

Lower price levels for monitoring

Initial profit-taking at current levels could send shares down to around $218, an area just below the 50-day moving average, where they could find support near a trendline connecting the June high and July low.

Further downside could lead to a retest of the $207 low, a spot on the chart where investors could look for “buy the dip” opportunities near the stock’s June 11 close, which is also closely aligned with the low of a smaller decline later this month.

Higher price levels observed

Sustained upward momentum could push shares to $233, where they may face additional selling pressure at several prices just below the stock’s record high.

To predict a price target above Apple’s all-time high (ATH), investors can use the measurement principle. To do this, we calculate the distance between the lower and upper trend lines of the ascending triangle near its widest point and add that amount to the breakout area. For example, we add $70 to $197, which gives a target of $267.

Apple shares fell 0.3% to $226.50 in extended trading on Monday.

The commentary, opinions and analysis expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more information.

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