Apple traded slightly above $129 on Wednesday, the lowest price level in 18 months. The last time within that period that the stock traded very low was in June, when it hit $130 before embarking on a recovery. In December alone, Apple has fallen by more than 12%, the biggest loss since May 2019.
The sustained decline in the stock of the iPhone maker comes in the middle of a stock market turmoil. But aside from these broad market factors, Apple is grappling with production challenges in China. That comes with the Covid-19 surge in China, where most of Apple’s products are manufactured.
Analysts covering Apple have also been less optimistic for the first quarter of 2023. Earlier in the month, Oppenheimer assigned a price target of $170 for the stock. This was a downgrade from the previous price target of $190. The downgraded target reflected ongoing China woes, which are projected to lower iPhone sales by 6.5 million units.
In the long term and into Q2 2023, analysts expect iPhone demand to grow. Oppenheimer has an outperform rating in the longer term. They cite Apple’s strength in hardware and online services, which are expected to drive growth.
Apple stock loses support at $136
A technical outlook shows Apple losing momentum after bears crashed to a price below $136. The momentum is weak and bearish, as shown by the MACD indicators. The RSI remains below the midpoint, with room to fall to the oversold level.
Will Apple proceed lower?
The technical indicators are very bearish for Apple. Momentum is also weakening. On the bear side, the levels to watch before buying Apple are $123 and $104.
The post <strong>Apple stock claims a near 2-year low, and sellers still look aggressive</strong> appeared first on Invezz.