Apple shares rose for the 11th straight day

Shares of technology giant Apple (AAPL.US) have scored a historic rise. The company's stock valuation has risen for 11 days in a row which is a new record in the company's history. The company already erased 2021 losses. 

• The company's capitalisation has once again reached almost $3 trillion, just 2% below the ATH;

• Similar performance was last seen in 2003, when stock price was moving higher for 12 days amid the rise in popularity of iPods;

• Fueling the company's rise was speculation about progress in negotiations between Ukraine and Russia and rebound of other 'Bigtech' companies including Google (GOOGL.US), Microsoft (MSFT.US) and Netflix (NFLX.US). 

• The Nikkei news agency reported significant production cuts of the cheaper iPhone SE due to weakening demand. This could indicate potential supply chain problems and a declining global demand which would be a very negative indicator for most listed companies, including Apple;

• The iPhone SE model which was made available for sale earlier this month, may not turn out to be as good a business solution as the company expected. Some speculation emerged recently thar production may decrease by 20% reduction in 2022;

• Sales of AirPods headphones have been cut by 10 million units this year in a bid to reduce inventory levels. The company sold more than 76 million headphones in 2021, according to information provided by Counterpoint Research. On the other hand, Apple's iPhone 13s could drop by up to 2 million units in 2022 due to temporary fluctuations in demand;

• Severe production constraints could contribute to the company's revenue decline in 2022;

While long-term Apple appears to remain an interesting business, speculation around the sales of iPhone SE and the global economic climate may lead to a downward correction. Apple shares are trading slightly lower in premarket.

Apple shares (AAPL.US), interval D1. Apple stock prices have been moving in a downtrend since the beginning of the year. Last week, we saw a dynamic top breakout from the downward channel, which coincided with the 61.8 Fibonacci retracement of the downward wave. The stock price continues to rise, the resistance at $175 was broken, which coincided with the 78.6 retracement and previous price reactions. The price seems to be on the way to reach ATH. However if sellers manage to regain control and push the price below 170 USD, then sharper downward correction may occur. Source: xStation5