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Apple shares are up more than 7 percent this year, but according to one technician, the stock has reached some key technical levels that could suggest losses ahead.

Rich Ross of Evercore ISI said that while Apple is still in an uptrend, previous support at the 200-day moving average is now becoming resistance for the stock.

"Importantly, we broke below that in July and on the rally we failed" to move back above the average line, he said Thursday on CNBC's "Trading Nation."

Even more concerning to Ross is a potential "head-and-shoulders top" forming on the chart, a technical pattern that is seen as a sign of a reversing trend.

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"We could invalidate that formation on a break above that 200-day, if we take that shoulder out and we can get through this neckline of resistance," Ross said. "But below it the stock remains vulnerable."

Resistance now comes in around $122, he said, and if Apple can break above that level, the stock should be able to continue its recent rally. Apple shares have risen more than 5 percent this week about $119.

However, another failed attempt could mean a lot more trouble for Apple.

"Let's watch this key 200-day moving average to really tip the scales as to the direction of the next big move on this stock," he said.

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