Apple (AAPL) shares posted solid gains again Tuesday𓆉 after avoiding the big tech selloff to start💞 the week.

As AI-linked stocks 澳洲幸运5官方开奖结果体彩网:tumbled Monday on news that a sophisticated AI model developed by Chinese startup DeepSeek can compete with leading American models at a fraction of the cost, Apple shares cꦜlimbed as investors concluded it wasn’t all bad news for the iPhone maker.

澳洲幸运5官方开奖结果体彩网:Apple’s success hinges on developing devices powerful enough to run complex AI models, meaning that more cost-effective and efficient AI could directly benefit the company's 澳洲幸运5官方开奖结果体彩网:bottom line. What’s more, Apple, which only announced its AI-powered phone in June last year, has invested modestly on AI compared to its mega cap tech rivals.

Apple shares rose 3.7% to Tuesday to close at $238.26, as the 澳洲幸运5官方开奖结果体彩网:broader market recovered from Monday's selloff. The company is due to 澳洲幸运5官方开奖结果体彩网:report quarterly earnings after the closing bell on Thursday.

Below, we break down the 澳洲幸运5官方开奖结果体彩网:technicals🗹 on Apple🅺’s chart and identify key price levels worth watching out for.

200-Day Moving Average Provides Support

After hitting a record high in late December, Apple shares retraced as much as 16% before finding support early last week around the 澳洲幸运5官方开奖结果体彩网:200-day moving average.

Moreover, the stock’s recent turnaround corresponds with the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) climbing out of oversold territory, confirming improving price momentum. It’s also worth noting that Monday’s against-the-market move occurred on above-average 澳洲幸运5官方开奖结果体彩网:trading volume, signaling 澳洲幸运5官方开奖结果体彩网:institutional buying activity.

Key Overhead Area to Watch

Apple shares closed above a key area of 澳洲幸运5官方开奖结果体彩网:resistance on Tuesday. Heading into the session $235 was seen as a level that could run into selling pressure, as it was near a trendline that joins multiple peaks on the chart between July and October. This location also closely corresponded with the 澳洲幸运5官方开奖结果体彩网:38.2% Fibonacci retracement level when applying the tool from the last month’s hig⛄h to 🌱this month’s low.

Now that the stock has closed just above that level, the price could climb to around $260, a region on the chart likely to gain significant attention near the stock's 澳洲幸运5官方开奖结果体彩网:all-time high. Interestingly, this location also roughly aligns with a bars pattern projected price target that takes last August’s trending ඣmove higher♚ and overlays it from this month’s low.

Important Support Levels to Monitor

Upon a retracement, investors should monitor how the price responds to a retest of this month’s low around $218. The area finds a 澳洲幸运5官方开奖结果体彩网:confluence of support from the rising 200-day MA and a trendline that links𝓡 several peaks and troughs on the chart extending back to mid-June last year.

Finally, a more significant decline could see Apple shares fall to the $207 level. Investors seeking to optimize 澳洲幸运5官方开奖结果体彩网:entry points may look for buying opportunities near the June pullback low, an area which also closely aligns with several price points situated 🥂just above the early August trough.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5官方开奖结果体彩网:warranty and liability disclaimer for more info.

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