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Apple’s drop sets up ‘summer buying opportunity’: Technician

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Apple is a 'summer buying opportunity': Technician

Apple has recently taken a tumble, falling more than 5 percent this week. But according to one technician, the drop provides a golden chance for investors to snatch up the tech giant's shares.

Evercore ISI's Rich Ross said although the stock has broken a key level in falling below its 200-day moving average, it could be a "potential false break … which gets us going in the other direction."

Apple has dropped about 12 percent since reporting second-quarter earnings in late July.

Ross said the stock has fallen around support levels of $115, and if it continues to fall significantly, the next level to watch for will be $106.

He noted that Apple has yet to fall back to early 2015 levels before a jump on earnings in January, when the stock gained more than 5 percent after the report's release. The stock is up more than 3 percent year to date, and hit an all-time high of $134 in April.

"The break below the 200-day is not great, however, ultimately I think this is going to create a nice summer buying opportunity and the stock should rise in the fall," Ross said Tuesday on CNBC's "Trading Nation."

Read More Traders bet on another plunge for Apple

Ross thinks Apple can pare losses and return to a price target of $152, a 33 percent rise from its Tuesday close of $114.

"Apple remains structurally sounds and in a long-term uptrend," Ross said. "Ultimately, this is a stock which can easily regain momentum lost during six months of sideways trading."

Although Apple beat earnings expectations in July, the stock price fell on concern over the company's ability to keep up growth in products and iPhone sales.

However, the majority of analysts remain bullish. About 73 percent have a "buy" rating on Apple, with an average price target of $146.

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