Apple Inc. (AAPL) shares are trading sideways on Friday, but the recent downtrend might be losing steam. The stock has hit a key support level and is showing oversold conditions, a combination that often precedes a bounce.

The $258 price point has been remarkably significant for Apple for more than a year. First it was resistance, now it's flipped to support. This kind of role reversal happens because of how traders think about their past decisions.

Here's how it played out: Back in late 2024, Apple was climbing nicely. When it hit around $258, sellers overwhelmed buyers and the stock fell. The people who bought shares at $258 watched their positions go red and felt regret. They held on, hoping to at least break even if the stock recovered.

Sure enough, when Apple rallied back to $258 in September, these remorseful buyers rushed to exit at breakeven. The flood of sell orders created resistance at that level.

Then in late October, the stock broke through that resistance and pushed higher. Now it was the sellers' turn to feel regret. Many of those who sold at $258 watched the price climb and decided that if they got another chance, they'd buy back in at the same price.

Yesterday, when the stock dropped back to approximately $258, those remorseful sellers jumped in with buy orders. The result? That same $258 level now acts as support.

But there's another piece to this puzzle. Apple is also oversold according to the Commodity Channel Index (CCI). When the CCI drops below its lower threshold, it signals oversold conditions. That's exactly where we are now.

The combination of being oversold while sitting at a strong support level can be bullish. It suggests that Apple may be setting up for a move higher. The technical setup is there, and the psychological battle between buyers and sellers at this price level could tip in favor of the bulls.