Apple Stock Avoided the DeepSeek Selloff—Watch These Key Price Levels

Core Insights - Apple shares experienced a solid gain of 3.7% on Tuesday, closing at $238.26, as the broader market recovered from a previous selloff [3][9] - The company's stock has shown resilience, avoiding the significant decline seen in AI-linked stocks following news of a competitive AI model from Chinese startup DeepSeek [1][9] - Apple's success is increasingly tied to its ability to develop devices capable of running complex AI models, which could enhance its profitability [2] Technical Analysis - After reaching a record high in late December, Apple shares retraced by as much as 16% before finding support around the 200-day moving average [4][9] - The stock's recent upward movement coincided with the relative strength index (RSI) moving out of oversold territory, indicating improved price momentum [4] - Apple shares closed above a critical resistance level of $235, which was previously seen as a potential selling pressure point [5][9] Price Projections - Following the breakout above $235, the stock could potentially rise to around $260, which aligns with the all-time high and a projected price target based on previous trends [6] - Investors should monitor the response of the stock price to a retest of this month's low around $218, which is supported by the rising 200-day moving average [7] - A more significant decline could see shares fall to the $207 level, where buying opportunities may arise near the June pullback low [8]