Upcoming Q2 2022 results key to new Apple stock price forecast

Apple’s stock price is down 1.70% on a day that saw some selling in tech stocks listed on the Nasdaq 100 index. The drop follows two days of gains in the stock, but the price chart shows the stock starting to consolidate at the site where highs were seen in early January and early February.

Elon Musk’s Buy Playbook on Twitter sparked a series of buys in tech stocks on Monday. However, this request has dissipated. This new round of sales comes after a remarkable 11-day winning streak that ended on March 30. On the day, the intraday violation of the 176.58 resistance suffered from a lack of follow-on buying, leading to declines and stagnation around the 176.58 resistance mark.

Morgan Stanley raised its 12-month Apple stock price forecast to $210 on stronger performance in the first quarter of 2022. The company is expected to report fiscal Q2 results on April 28. The second quarter of 2021 generated $89.6 billion in revenue, a 54% year-over-year increase from the same period in 2020. iPhone sales led revenue. In the first quarter of 2022, Apple surpassed that figure, generating $123.9 billion in revenue. Due to Apple’s refusal to provide quarterly guidance since 2020, expectations for the current quarter are unclear.

In a day that has seen very little fundamental data from the company, what is the current forecast for Apple’s stock price?

Apple stock price forecast

Following the successive double penetration that closes above the upper boundary of the consolidation zone, the breakout of the bull flag on the daily chart is in progress. However, the northward price movement has stopped at the resistance line of 176.58. Bulls need to force a break of this level to the upside for the measured move to continue, targeting its completion point above the resistance bar of 182.83 (4th Jan 2022 high).

On the other hand, an extension of the intraday decline preserves the integrity of the 176.58 barrier and invalidates the pattern. The downside move towards the 167.69 support gains momentum if the decline extends below the 171.94 April 1, 2022 low. The support at 162.70 (28th Jan, 28th Feb and 4th March lows) forms an intermediate barrier between the pivot at 167.69 and the support target at 157.18 (25th Jan low). Additional targets to the south at 151.74 and 147.46 only become valid if further price deterioration occurs.

Apple: daily chart

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Karen J. Nelson