Apple Stock News and Forecast: Hitting peak performance as AAPL stock closes 3% higher

AAPL stock closes Wednesday over 3% higher as markets rally on oil collapse.
AAPL stock was also boosted by Peak Performance day with multiple product launches.
Apple announced a new lower-priced iPhone, which was the standout for analysts.

Ivan Brian FXStreet

Apple (AAPL) stock participated in the broad market rally on Wednesday and outperformed some of the main indices. The Nasdaq closed up 3.58%, while the S&P 500 was up 2.57%. The rally in the overall market was brought about by a risk-on tone and probably an over positioning on the short side. The collapse in oil prices by nearly 10% was the main factor at play yesterday for risk assets. This was brought about by talk of OPEC increasing production, Iran coming back into the fold, and a more accommodative tone from both Russian and Ukrainian speakers. Equity markets were also bolstered by talk of yet more stimulus or some form of action, in particular from the EU on a collective debt scheme.

Apple Stock News

Adding to sentiment from falling oil prices was Apple's Peak Performance event on Wednesday. Apple unveiled a slate of new products or new versions of existing products. The most noteworthy was probably a cheaper iPhone, the iPhone SE. According to a report from Counterpoint Research, this will still offer 5G connectivity and could be a game-changer in Asia. Android phones are traditionally more used by consumers in Asia, so this new budget level phone is noteworthy for Apple.

"Apple remains our Top Pick in IT Hardware given durable fundamentals, predictable cash flows, additional 2022 product launches, and platform stability in an otherwise uncertain and volatile market backdrop," Morgan Stanley wrote.

"AAPL's gentle shift toward content (i.e., software) and services that maximize consumer lock-in into AAPL's ecosystem should be a key long-term upside value driver through higher lifetime customer value," Needham & Company said.

Apple also made a foray into sports streaming as it takes up Major League Baseball on Friday nights, although due to failed negotiations between the league and players, the 2022 season has already been postponed until mid-April at the earliest.

Apple Stock Forecast

The key levels remain in place for AAPL stock despite yesterday's move. The stock is still in a bearish trend so long as it is below $169. This is the last significant high in the current downtrend. That leaves the next target as $153 and the next key support. If AAPL stock can break $169, then that opens the door for a move to $176. For now, though the trend is firmly bearish. The Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) confirm the downtrend.

AAPL stock chart, daily

In the short term, $162.47 is the key pivot. Above there Apple stock can target and test the $169 resistance. There is a lot of volume around this level, so it will mean a slow move.

AAPL stock chart, 15-minute

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Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

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