Apple stock slides 4.1% after death cross signals deepening downtrend
Apple has started exploring alternative manufacturing options
Apple Inc. (AAPL) continues to experience significant turbulence, trading at $190 on April 11, 2025.
This represents a sharp 4.13% decline from the previous trading session and follows what had been its best single-day gain since 1998 earlier in the week. Intraday volatility remains elevated, with a trading range of $183.04 to $195.04 highlighting investor uncertainty. From a technical standpoint, the most notable recent development is the appearance of a "death cross" pattern—when the 50-day moving average crosses below the 200-day moving average.
This occurred just three sessions ago and has historically been a bearish signal for Apple stock. The last occurrence in March 2024 led to a 7.7% decline over a 22-day period. Current moving averages suggest bearish momentum is building. The 50-day moving average has dipped to around $188.10, while the 200-day sits at $189.05, confirming a downward crossover.
AAPL stock price dynamics (February 2025 - April 2025). Source: TradingView.
RSI (Relative Strength Index) remains neutral around 47, suggesting there's still room for further downside before the stock enters oversold territory. Key support levels are clustered at $166, $155, and $138—prices that mark prior consolidation zones and trendline intersections. These should be monitored closely if selling pressure intensifies. On the flip side, $197 is a major resistance level, which coincides with a recent local high. A breakout above this level could attract momentum buying and shift short-term sentiment.
Trade tensions and Apple's strategic response
Apple’s recent price action cannot be fully understood without considering macroeconomic developments, particularly surrounding U.S.-China trade relations. President Donald Trump’s announcement of sweeping tariffs—most notably a 104% levy on Chinese imports—directly impacts Apple’s supply chain, as about 90% of its devices are assembled in China. The move has stoked fears that Apple may be forced to absorb higher manufacturing costs or pass them on to consumers, both of which could erode margins or demand.
In response, Apple has started exploring alternative manufacturing options. It has already expanded assembly in India and Vietnam, but these countries are now also affected by tariffs of 27% and 46%, respectively. Brazil has emerged as a potential hub, benefiting from a relatively modest 10% tariff rate. While diversification is a positive long-term strategy, shifting production at scale is complex and time-intensive. As a result, Apple remains vulnerable to further policy shocks in the interim.
Despite the macroeconomic headwinds, some institutional investors maintain a bullish outlook. Bank of America recently reiterated a “buy” rating, emphasizing Apple’s strong balance sheet, robust free cash flow, and long-term potential in artificial intelligence. The bank has issued a price target of $250, implying a potential 45% upside from current levels.
Short-term scenarios
Looking ahead, technical and fundamental signals suggest Apple may remain under pressure in the short term. If the stock breaks below the critical $166 support level, further downside to $155 or even $138 is likely. Conversely, if shares regain traction and breach the $197 resistance, a short-term rally could follow, possibly targeting $210 in the coming weeks.
The near-term outlook hinges on further clarity regarding U.S. trade policy and Apple’s execution on supply chain adjustments. While short-term risks are pronounced, long-term investors may view current levels as an attractive entry point given Apple’s strong fundamentals and commitment to innovation. Nonetheless, traders should be prepared for elevated volatility and rapidly shifting sentiment in the sessions ahead.
Earlier this week, Apple was hit by renewed uncertainty as new U.S. trade tariffs introduced a 34% import tax on Chinese goods. With 90% of its products assembled in China, Apple now faces up to $8.5 billion in added annual costs, threatening to reduce profits by around 7% amid already shrinking margins.
