Apple (AAPL) shares moved lower Monday morning, tracking a broader decline for U.S. stocks, but the company remains in striking distance of becoming the first ever to reach a $4 trillion market capitalization.

Last Thursday, the company set a fresh record high just above $260 after Wedbush analysts led by Apple bull Dan Ives said that artificial intelligence (AI) demand sets the tech giant up for a “golden era of growth” in 2025. This week, investors will be watching if Apple shares can hit $264.62, the price need to reach a $4 trillion market cap.

The company first unveiled its AI-software marketed as Apple Intelligence back in June, but the rollout has been slow, with investors watching if a major upgrade cycle to access the features drives 2025 sales.

Apple shares were down 1.2% at $252.50 in midday trading Monday. Since the start of the year, Apple shares have gained around 31%, handily outpacing the S&P 500’s 24% increase over the same period.

Below, we take a closer look at Apple’s chart and apply technical analysis to identify several important price levels that investors may be watching.

Evening Star Pattern Emerges

Apple shares have trended higher since breaking out above a broad ascending triangle formation earlier this month. However, a bearish evening star pattern has formed on the iPhone maker’s chart over the past three trading sessions, indicating a potential reversal.

Moreover, as the stock climbed to a record high last week, the relative strength index (RSI) made a comparatively shallower high to create a bearish divergence, a technical signal pointing to weakening price momentum.

It’s also worth noting volume spikes in the stock on June 21, Sept. 20, and Dec. 20, with these dates coinciding with triple witching days, suggesting portfolio rebalancing by larger market participants, such as institutional investors and hedge funds.

Let’s identify key support levels to watch if the stock undergoes a reversal, but also forecast a bullish price target to monitor if the shares continue their longer-term uptrend.

Key Support Levels to Watch

The first level to eye sits around $237. This location on the chart could attract buying interest near the 50-day moving average and the ascending triangle’s top trendline, an area that may flip from prior resistance into future support.

A decisive close below this area could see Apple shares retrace to the $218 level, a region where investors may look for entry points near a trendline that links a range of comparable price action on the chart between June and September.

Bullish Price Target to Monitor

Investors can forecast a bullish price target by using the measuring principle, a technique that analyzes prior chart patterns to projects potential future moves.

To apply the tool to Apple’s chart, we calculate the distance between the ascending triangle’s two trendlines near their widest point and add that amount to the initial breakout area. For instance, we add $41 to $237, which forecasts a target of $278, a location where technical traders may look for exit points.

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