Tim Cook, CEO of Apple, is in China, praising the AI chatbot Deepseek, leading to a over 1% rise in Apple shares. His announcement about the role-playing game Wuthering Waves coming to Mac also contributed to this increase.
In contrast, Nvidia’s stock has fallen due to concerns raised by Alibaba’s Chairman about a potential AI bubble in the US. Nvidia has entered a bearish Death Cross on its daily chart, indicating a possible extended downtrend.
Apple Stock At A Critical Level
Apple’s stock is nearing a critical point as its 50-day and 200-day moving averages approach each other, with significant support indicated around $210. However, a potential break could see shares decline towards $196 or lower.
Cook’s visit to China and his endorsement of Deepseek underscore the growing relationship between Western tech firms and Chinese artificial intelligence. Investors have responded positively, pushing Apple’s stock up more than 1%. The announcement that Wuthering Waves, a popular role-playing game, will be available on Mac has also played a role in this increase. Both developments highlight the company’s strategy to attract Chinese consumers and expand its software ecosystem.
On the other hand, worries over an AI bubble in the US, voiced by Alibaba’s Chairman, have had a negative effect on Nvidia’s stock. The market has reacted decisively, with shares now caught in a bearish Death Cross pattern. This occurs when the 50-day moving average crosses below the 200-day moving average, which is widely seen as a warning sign of further weakness. The implications are clear: downward momentum could continue unless buyers step in with conviction.
Apple’s share price is approaching a crucial juncture. The narrowing gap between its 50-day and 200-day moving averages suggests a decision point is near. Support has been observed around $210, but any failure to hold this level could push shares down towards $196 or even lower. For those trading derivatives, this presents both risk and opportunity. A sustained move above these levels would signal renewed strength, while a breakdown could trigger accelerated selling.
Market Volatility Ahead
The next few weeks are likely to be volatile as traders react to these technical signals alongside broader market sentiment. For those positioning themselves in options or leveraged products, being aware of these price levels and market narratives will be key.
