Apple stock: mixed news
What a turbulent time we are living in right now! The positive reports switch negative ones just in several hours and result in big swings in the markets. A good example of this situation is the performance of Apple’s stock. The risk-on sentiment across the stock market earlier this month boosted the stock of the famous iPhone producer to a new all-time high above $355. However, this level turned out to be very strong for buyers, as negative concerns around the second wave of coronavirus pulled the asset back to $335. As for Friday, bulls could not break the current strong resistance. Does this week have any surprises for Apple?
Heads up to the Worldwide Developers Conference
If you like to bet how releases of new products affect the stock of a company, Apple has something for you. The event full of important announcements and long-awaited updates, the first digital Worldwide Developers Conference is scheduled for this week, on June 22-26.
According to different sources, we will see the updates of watchOS 7 and iOS 14 with a wider range of features including a new fitness app and an augmented reality app. Also, the company is widely expected to share the insights of its transition from Intel processors – a significant step towards the independence of Apple’s technologies. Most importantly, we may likely hear something new about the iPhone 12 models, which are rumored to support 5G technology. The new phones are expected to be out in 2020 and 2021.
It’s worth mentioning that the last fact is the main reason which pushes analysts’ price targets for Apple’s stock no matter what. The long-term targets for the stock are set at $400 and even at $405!
Bears are still around the corner
Keep in mind that the optimism related to WWDC20 doesn’t make global risks disappear. Among them, the major ones are the US-China tensions and the second wave of Covid-19. The news that the company is shutting 11 stores in Arizona, Florida, North and South Carolina pulled the price of the stock down last week. Therefore, we may expect more pressure on the asset caused by more negative virus-related headlines.
What are the key levels for Apple’s stock?
For now, the main focus of bulls remains on the $355 level. After that, we may expect the price to move higher to the $365 level. For sellers, the key support level is placed below the lower border of the ascending channel at $335. The next one is placed at $319.
What should you do for trading Apple’s stock?
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