Apple (AAPL) Shares Surge to Four-Month High

According to the AAPL price chart, the stock rose to the $220 level yesterday – marking its highest point since early April.

The rally was fuelled by several bullish factors:

→ Trade developments: President Trump announced an additional 25% tariff on goods from India, but notably excluded smartphones – a key point, as a significant portion of iPhones are manufactured there.
→ Seasonal momentum: Apple is approaching its historically strong period. A new iPhone model is traditionally unveiled in September, followed by the start of the holiday shopping season and strong retail demand.

Technical Analysis of Apple (AAPL) Shares

In our previous analysis, we identified an ascending channel (marked in blue) formed by price fluctuations following the April 2025 correction. A bullish reversal (highlighted with an arrow) has provided a basis to update the channel’s slope. In this configuration, the price is now in the upper half of the channel, moving towards its upper boundary.

From a price action standpoint, AAPL's rally is characterised by aggressive upward movement, accompanied by bullish gaps. This is a notable observation, suggesting that while sellers attempted to regain control during a consolidation phase in late July, they lacked conviction – with momentum now favouring the bulls.

This resembles a failed Rounding Top bearish pattern – bulls were able to push the price higher, signalling strong demand.

Potential resistance levels:
→ Near-term: The upper boundary of the channel, reinforced by the $225 level – a price point that has previously acted as a reversal zone.
→ Longer-term: A descending trendline (marked in red), drawn across key highs from recent months.

Bulls might find support at the channel median, which is further reinforced by the former resistance level of $214.

Having risen more than 8% since the start of the week, AAPL now appears overbought in the short term. However, given the strong fundamental backdrop, any potential pullbacks might prove to be shallow.

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