Apple Inc. (NASDAQ:AAPL) fell 2.13% on Friday as the stock seemingly traded within a range following renewed weakness in global stocks. The decline follows tensions between the US and Russia over the latter’s invasion of Ukraine, which sparked nervousness in markets.
The decline was still below the tech-heavy Nasdaq 100 index, which shed up to 2.96%. The growth tech stocks are also digesting speculations of policy tightening by the Federal Reserve.
Nonetheless, strong fundamentals make Apple a “hold” stock for long-term focused investors. Late January, the company posted a record revenue of $123.9 billion in the first quarter of 2022, representing a growth of 11% from the previous year.
The company also announced metaverse ambitions to grow its services. The robust results and outlook boosted the stock, which was sitting slightly above the $157 support.
The strong fundamentals have also seen the Bank of America analyst Wamsi Mohan assign it a buy rating, with a target of $215. But should you buy it now?
Apple shows weaknesses at $169 minor support.
Source – TradingView
On the daily chart, Apple is under pressure around the $169 minor support. With the ongoing weaknesses impacting the tech stocks, the support is likely to be breached, and Apple could proceed lower.
However, the stock is still on an uptrend, with its strong fundamentals also a catalyst for further gains. If $169 fails to hold, Apple is likely to proceed lower up to the established support of $157. The level has been tested severally and should be an area of interest for a potential bullish reversal.
Summary
Apple remains a viable stock for hold in the medium and long-term. Although the stock is currently facing weakness, the strong fundamentals are likely to catapult it higher. We urge patience at the current level, with potential buy trades at the support of $157.
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