TLDR
- Apple stock continues to decline, down 17% from December’s record high, amid concerns about delayed Siri AI features and potential tariff impacts
- The stock has broken below its symmetrical triangle pattern and 200-day moving average on high volume, trading at $216 (down 2.2% Wednesday)
- Key support levels to watch are at $219, $207, and $197, with overhead resistance at $237 and $247
- Separately, Apple is reportedly developing a real-time translation feature for AirPods to be released with iOS 19 later this year
- The translation system would use iPhone as the translation hub, similar to features already available from Google’s Pixel Buds and other competitors
Apple shares continued their downward trend on Wednesday, bucking the broader tech rally. The stock dropped 2.2% to $216 in late trading, extending its slide to 17% below December’s record high.
The sell-off intensified following news that Apple is delaying the rollout of several AI features to Siri. Analysts suggest this delay could hurt iPhone sales in the coming quarters.
Adding to investor concerns are worries about potential tariffs. The Trump administration’s import duties could squeeze Apple’s profit margins, as the company manufactures most of its devices in China.
Monday saw Apple experience its largest one-day drop in two-and-a-half years. The stock has now decisively broken below its symmetrical triangle pattern and the closely watched 200-day moving average.
Technical analysts note that above-average trading volume has accompanied the decline. This suggests strong selling conviction from larger market participants.
While the relative strength index (RSI) confirms bearish momentum with a reading below 50, the indicator is approaching oversold territory. Historically, such conditions have offered tactical buying opportunities in Apple stock.
Price breaking below major trendline
The $219 level had been expected to provide support from a trendline connecting price points between June last year and January this year. However, the stock has now breached this level during Wednesday’s trading.
If selling continues, the next support level to watch is around $207. This area aligns with last year’s late June pullback low that formed within a broader uptrend.
A more substantial decline could test support at $197. This level corresponds with the December 2023 peak and August 2024 trough, while also roughly matching a measured move price target from the triangle breakdown.
For those tracking potential recovery points, the first overhead resistance sits near $237. This level represents confluence from the triangle’s lower trendline and key peaks from October and July last year.
Further buying could push Apple shares toward the $247 area. At this point, they may face resistance near the triangle’s top trendline, which aligns with last month’s peak and a mid-December retracement low.
New features for AirPods
In product development news, Apple is reportedly working on enhancing its AirPods with new features. According to Bloomberg, the company plans to add real-time translation capabilities to AirPods later this year.
The translation system would work as a two-way interface. The iPhone would serve as the translation hub, sending translated audio to the AirPods wearer while playing translations through the phone’s speaker for the other person.
This feature is expected to arrive with iOS 19. However, Apple isn’t pioneering this technology, as Google’s Pixel Buds have offered similar translation features for some time across dozens of languages.
Several other brands like Earfun, Mymanu, and Timekettle have also implemented translation features in their wireless earbuds. Apple could leverage its partnership with OpenAI or develop its own on-device translation system to maintain its privacy-focused approach.
The AirPods update follows Apple’s recent wellness-focused additions to the product line. Late last year, the AirPods Pro 2 received features like Loud Sound Reduction, hearing tests, and hearing aid functionality.
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