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.

Read MoreApple stock is trading like a bond

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.

Want to be a part of the Trading Nation? If you'd like to call into our live Wednesday show, email your name, number, and a question to


Trades to Watch

Trader Bios


Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

Read more