Apple may fall another 29%: Top technician

One technical analyst is seeing even more pain coming for Apple.

Apple has fallen more than 4 percent in 2016, as concerns over iPhone orders and shipments weigh on investor sentiment. Looking at the charts, Rich Ross of Evercore ISI said several technical indicators will also pose challenges to Apple's share price, which may fall as much as 29 percent from its Wednesday levels.

(In early pre-market trading Thursday, the stock dropped another 3.4 percent amid a broad China-driven sell-off).

"Regardless of what you think of the stock, this is not a great chart here. The trend is down in the short term and intermediate term," Ross said Wednesday on CNBC's "Trading Nation."

Apple's stock looks to have formed a head-and-shoulders top, Ross said, a technical sign that the trend has turned downward after a brief move higher. Additionally, he said the stock has struggled to rise above its 200-day moving average since its August lows.

"That's telling you that the trend just might be down, and that head-and-shoulders top reinforces the gravity in that change," he said.

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At a minimum, Apple may test the low $90 level, Ross said. However, following the drop from its highs in 2015, he sees an even steeper potential fall to $72. Apple shares fell 2 percent on Wednesday to just above the $100 level.

Long term, Ross is still bullish on Apple. However, with no new products in the pipeline for months, he recommends stepping away from the shares for now.

"All is not lost in the stock here. The bigger trend remains higher in the long term. But with a new product not scheduled to be released until September, and the chart showing some real wear, I would be wary of Apple here," he said.

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Brian Sullivan is co-anchor of CNBC's "Power Lunch" (M-F,1PM-3PM ET), one of the network's longest running programs, as well as the host of the daily investing program "Trading Nation." He is also a frequent guest on MSNBC's "Morning Joe" and other NBC properties.

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