Watch these Apple stock price levels as iPhone 16 launch event scheduled for Monday

Apple (AAPL) stock is likely to be in the spotlight on Monday as the tech giant holds its “Glowtime” product launch event, where it is expected to unveil a new artificial intelligence (AI)-enabled iPhone alongside other devices, as well as provide further details on major software updates, including iOS 18 with Apple Intelligence support.

Since hitting a correctional low in early August, Apple shares have risen about 13% ahead of Monday’s presentation, raising the possibility of a news-selling event. Indeed, investment bank Morgan Stanley recently noted that the company’s stock tends to underperform the S&P 500 on iPhone launch day but modestly outperform the market over the following three months.

Below, we’ll take a closer look at Apple’s chart and use technical analysis to identify key price levels that investors should pay attention to ahead of the biggest event of the year for the iPhone maker.

Big price swings after new record

After setting a new record in mid-July, the stock retreated 17% to its early June breakout zone before spending most of August recouping much of that decline.

The price recently closed Friday’s session below its 50-day moving average (MA), although trading volumes remain thin, indicating little confidence in last week’s weakness. Apple shares fell 0.7% to $220.82 on Friday amid a broader decline in technology stocks.

Going forward, investors should keep a close eye on several important price levels that could become of interest.

Key support levels to watch out for

Initial selling could see shares test the $218 level, a chart area that finds support at a trend line connecting a series of trading activities around the June high and July low.

Failure to hold this level could trigger a drop to $207 where traders could place limit buy orders near the close of the June 11 breakout candle, an area that also closely aligns with the June pullback low.

A much more significant move lower could come from a retest of last month’s low at $196. At that point, bargain hunters could look to buy near the initial breakout area, which has potentially turned from resistance to support and is also near the rising 200-day moving average.

Important resistance level to monitor

If Apple’s stock price comes under pressure ahead of this week’s events, it could initially face resistance around $233, an area where traders could take profits near similar trading levels that are just below the stock’s all-time high (ATH).

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On the date of writing this article, the author did not own any of the above securities.