While Apple investors are paying close attention to the company's Worldwide Developers Conference underway in San Francisco, some traders are paying attention to another type of technicals— the ones found in Apple's stock charts. And according to one technical analyst, the stock may be getting ready to make a major move higher.
"It's a buy," said Todd Gordon, founder of TradingAnalysis.com. "It's a strong chart."
Gordon, who is long Apple through call options, sees similarities between Apple's price movements in late 2013/early 2014 and today. Two and a half years ago, Apple shares traded in a range mostly between $72 and $84, adjusting for its price for the subsequent stock split. The stock stayed in that range for 97 trading days, after which it rallied 55 percent the following 12 months.
By Gordon's reckoning, Apple's latest consolidation range has lasted 72 days. "We have a couple of days to go before the range is overdue," he said.
In the shorter term, Gordon expects Apple to hold an uptrend support line between $120 and $124.
"I like it," he concluded. "I'm long, and I'm going to stay that way."
