Watch these Apple price levels as the stock hits a record high on iPhone 17 sales optimism

Apple (AAPL) shares remain in the spotlight after hitting a new record high for the first time this year on Monday following signs of a strong start to iPhone 17 sales.

Sales of the tech giant’s recently released iPhone 17 series surpassed its previous lineup in the US and China within the first 10 days of its availability, according to a report by Counterpoint Research. The base model performed particularly well in China, while many US buyers upgraded to the Pro Max version, according to the research.

Apple shares are up 30% from their August lows and are up about 5% year-to-date (year-to-date). However, it tracks the returns of all Magnificent Seven members except Amazon ( AMZN ) since the start of the year amid concerns that the iPhone maker has fallen behind its big tech peers in the AI ​​race. The stock was down slightly at around $262 in recent premarket trading on Tuesday.

Below, we analyze the technical details on Apple’s chart and identify critical price levels worth paying attention to after the stock’s record high close.

Potential bear trap

After breaking under the flag earlier this month, Apple shares made a quick reversal to close above the pattern on Monday, creating a potential trap scenario. Such a trading event “traps” investors who initiate short positions and subsequently cause losses as the price rises.

Meanwhile, the RSI is confirming the upward momentum, although the indicator is still below its previous highs, suggesting that the stock has more room to move into price discovery mode before consolidation.

In another win for bulls, the 50-day moving average (MA) crossed above the 200-day MA last month to generate a bullish golden crossover.

Let’s apply technical analysis to predict how the new uptrend in Apple stock will unfold as well as identify support levels worth watching.

Applying bars pattern analysis to Apple chart

Investors can predict how a new higher trend might emerge in Apple stock using bar pattern analysis, a technique that analyzes past price movements to predict future trends.

Applying the study to the iPhone maker’s own chart, we extract the bars that form the strong uptrend from early August to late September and overlay them from that month’s low. This forecasts an upside target of around $308 and indicates that the move could continue into late November or early December if price action is in tune.

Interestingly, this earlier move began after a similar bearish trap formed on the chart after the breakout from the pennant, providing clues as to how a new trend could emerge from a similar trading setup.

Support levels are worth watching

During correction periods, investors should watch the $250 level initially. This area could provide support near the recent lows and the stock’s notable rise in the opposite direction from February.

Finally, selling below this level could send Apple shares falling towards the $237 level. Investors can look to cluster stocks in this area near a multi-month horizontal line connecting a set of converging trading activity on the chart between July of last year and September of this year.

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As of the date of writing this article, the author does not own any of the securities mentioned above.