Apple Stock Price Levels to Watch as Buffett's Berkshire Continues Cutting Stake

Key Takeaways

• Apple shares are in the spotlight Monday following news that Berkshire Hathaway once again trimmed its stake in the tech giant.
• The stock traded within an ascending triangle between July and October before breaking down below the pattern’s lower trendline late last month.
• Investors should watch important support levels on Apple's chart around $218, $198, and $181, while monitoring key overhead areas near $233 and $270.

Apple (AAPL) shares are in the spotlight Monday following news over the weekend that Warren Buffett's Berkshire Hathaway (BRK.A; BRK.B) has continued trimming its stake in the tech giant.

Last week, Apple shares came under pressure after the company provided soft current-quarter revenue guidance, prompting concerns about a slow iPhone 16 upgrade cycle amid the delayed rollout of the company’s highly anticipated Apple Intelligence that it initially announced in June.

The iPhone maker’s stock could also face scrutiny after Berkshire Hathaway reported on Saturday that it had offloaded about 100 million shares, or around 25% of its holding, in Apple during the third quarter. However, the tech behemoth remains the conglomerate’s largest stock position, with a market value of $69.9 billion as of Sept. 30.

Apple shares were down 0.9% at around $221 in midday trading Monday.

Below, we navigate Apple’s chart using technical analysis to identify important price levels worth watching out for.

Ascending Triangle Breakdown

Apple shares traded within an ascending triangle between July and October before breaking down below the pattern’s lower trendline late last month following the company's quarterly results.

Importantly, the recent move lower has occurred on increasing volume, indicating a rise in selling pressure among market participants.

Let’s point out three important support levels on Apple’s chart and also identify key overhead areas to monitor if the stock resumes its longer-term uptrend.

Important Support Levels to Watch

Firstly, it’s worth monitoring how the price responds to the $218 level, a location on the chart that may attract buying interest near the June peak, which also closely aligns with troughs in July and September.

A decisive breakdown below this level could see the shares decline to around $198, where they may encounter support near a trendline joining a range of peaks on the chart between July and September last year with the 2024 August swing low. 

Further selling opens the door for a fall to lower support at the $181 level. Buy-and-hold investors may look for entry points around this area near a horizontal line linking a series of comparable trading levels on the chart from June last year to May this year.

Key Overhead Areas to Monitor

The first overhead area to monitor sits around the ascending triangle’s upper trendline at $233. A convincing breakout above this level in coming weeks could set up a potential bear trap that leads to a resumption of the stock’s longer-term move higher.

To forecast an overhead price target above the stock’s all-time high (ATH), we can apply the measuring principle. We do this by calculating the distance of the ascending triangle near its widest point and adding that amount to the pattern’s top trendline. In other words, we add $37 to $233, which projects an upside target of $270.

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

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