Apple (AAPL) stock price analysis for March

Apple (NASDAQ: AAPL) stock price is trading about 1% lower in March after declining 8.1% in February. 

Fundamental analysis: One good and one bad news

Apple announced yesterday it has chosen the German city of Munich to build a new chip plant. This investment will be a part of the 3-year €1 billion ($1.19 billion) investment program in Germany.

The company is intending to build a 30,000-square-meter lab that will open in the second part of 2022. This way, Apple is aiming to build a “Silicon Design Center in Europe” as the new facility will become the largest research and development facility for semiconductors and software in Europe.

According to the official statement from Apple, the new facility will mostly focus on 5G and wireless technologies.

On a more negative note, a report in Nikkei Asia yesterday noted that Apple is planning to cut iPhone production for 2021, a decision driven by weaker demand for iPhone 12 mini series. 

Technical analysis: Apple stock price dips 

Shares of Apple are trading lower in 2021 after a blockbuster performance in 2020. The price action moved to hit $116.21 - the lowest level recorded since December. The price action trades about 1.2% in the red on a weekly basis after the entire tech sector staged a rebound on Tuesday. 

Apple stock price trades below the ascending trend line, as well as below the 100-DMA. The 200-DMA is offering nearby support at $114.51 while the Apple stock buyers will hope to push the price action towards the 100-DMA at $125.26. 

Summary

Apple stock price is trading lower in March amid fears over stretched valuations in the tech sector. The price action rebounded from 3-month lows as the buyers aim to lay a ground for another push higher.