China's iPhone Ban Shakes Market As Apple Struggles To Lift Stock Above The $200 Milestone

• China is intensifying its efforts towards the use of domestic devices over foreign ones, such as Apple iPhones.
• Despite China's strategic shift away from foreign tech, Apple Inc's stock remains robust, trading just 2.40% below its all-time high.
• Apple's stock has seen a significant 49% increase over the past year.

China's push for technological self-reliance is gaining momentum. Government agencies and state-backed companies have recently urged their employees to abandon foreign-made devices, including Apple iPhones, in favor of domestic options. This strategic directive is part of reducing dependence on foreign technologies.

China's support for domestic products not only strengthens its tech industry but also communicates its long-term objectives. This shift is not exclusive to big companies or restricted to major cities.

It is a trend that is evident even in smaller businesses and agencies in less prominent cities, indicating a widespread and synchronized push towards native technologies.

Despite significant developments, Apple Inc's AAPL stock has remained resilient, currently trading only 2.40% below its all-time high. This demonstrates a strong market confidence in the tech giant.

Furthermore, the stock has experienced a 49% increase over the past year. Investors are eagerly anticipating the possibility of continued bullish momentum, which could potentially lead to a 50% increase in total by the end of the year.

Although Apple's stock has had its fair share of challenges, one particular obstacle stands out, which is the $200 psychological level. This significant milestone has proven to influence the stock's trajectory on multiple occasions.

One such instance occurred in July 2023, resulting in a significant 16% drop. More recently, history repeated itself as the stock surged 20% to reach the $200 mark, only to be met with another decline.

Looking ahead, the next critical support level lies at the daily 20 simple moving average, currently at $293. If this level holds, it has the potential to catalyze a rebound to assist price to once again challenge the $200 resistance.

Despite December seeing the stock peak at a 5.15% increase, it is currently up 2.57% for the month due to the current correction. While Apple's stock gathers the momentum required to surpass the $200 threshold, investors must remain patient.

After the closing bell on Wednesday, December 20, the stock closed at $194.83, trading down by 1.05%.

This article is from an external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.