Apple Inc. (AAPL) shares have jumped, now boasting a market cap of $4.18 trillion, despite challenges in the broader market. This rise is due to its reputation as a safe investment and positive momentum from the iPhone upgrade cycle. Technical analysis indicates this rally might be reaching its peak. A large parallel channel that began from the Covid lows in March 2020 points to a possible high. The upper trendline of this channel aligns with peaks from 2021 and late 2024, marking a solid resistance level at $283. If the stock price gets rejected at this level, it could drop toward the channel’s bottom boundary, currently around $210. Market analysis supports a potential pullback soon. This information is not investment advice and is based on market observations. Trading involves risks, and readers should do their own research before making decisions. The content of this analysis does not come from a financial advisor. While we aim for accuracy and completeness, we cannot guarantee it, and the information is for general purposes only. We accept no responsibility for any actions taken based on this content. Apple’s stock is now testing a crucial resistance level at around $283, the top of a significant parallel channel dating back to 2020. This pattern suggests that the recent price surge may be running out of steam. The same upper boundary previously limited highs in both 2021 and December last year. Despite the strong stock price, recent data shows a slight decline in pre-order demand for the new iPhone 17 Pro models in key Asian markets, indicating that positive news may already be reflected in the stock price. Additionally, the put/call ratio for Apple has dropped to a two-year low, suggesting that many investors are complacent—often a sign of an upcoming market shift. This mirrors the sentiment just before the broader market decline in 2022. For traders looking for a potential pullback, buying put options is a straightforward strategy. We suggest targeting expirations in January or February 2026 to allow the trade sufficient time to develop. Strike prices around $275 or $270 could offer good returns if the stock fails to break through the expected resistance level. Alternatively, since implied volatility has increased, a bear call spread could be a risk-defined strategy to explore. One option is to sell the January 2026 $285 call while buying the $295 call to finance the position and limit potential losses. This trade will profit if Apple’s stock price stays below $285 until expiration. Long-term chart patterns suggest a possibility of movement back to the channel’s low end, near $210. This makes setting up bearish positions in the coming weeks particularly attractive. We believe any further gains toward the $283 level should be seen as an opportunity to start or add to short positions.

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