Apple is in a 'disastrous' situation: Trader

Times are getting tough for Apple investors.

Shares of the tech giant tumbled below $100 last week as concerns over the company's iPhone orders have weighed on investors. The stock is now down more than 27 percent from its all-time high, hit in late April 2015.

Yet rather than use the sell-off as an opportunity to buy more shares, one trader sees more pain for the world's largest company, which up until recently could do no wrong in the eyes of investors.

Read MoreWhy has Wall Street fallen out of love with Apple?

"Apple is in a potentially disastrous situation and it needs to be drawn attention to," Todd Gordon told CNBC's "Trading Nation" last week.

Looking at the tech giant's long-term chart, Gordon noted that the long-term uptrend is in danger of being breached. "We are on the verge of a technical breakdown," he said. "If we push through the $96 level in Apple, that's a big problem." If that uptrend line were to break, Gordon projected that the stock could fall as low as $81.

Back to $60?

It should be noted that Wall Street's consensus is currently far more bullish than Gordon's dire scenario for Apple. Of the 51 analysts that cover the stock, the average price target is $143.12 with a "buy" rating, according to FactSet.

Read More Dow 16,000 is coming soon: Louise Yamada

To come up with his target, the TradingAnalysis.com founder used a measured move. "We're going to take the distance of the all-time high that we saw in Apple early last year down to the August lows and then project it down from the reactionary high that we saw toward the end of 2015," he said.

"If we break that $81 level, then we have real problems and that paints a level of $55.94," he said. That's a potential 43 percent drop from the current price of just under $99 a share.

"As technicians we must trade what we see, not what we think, and Apple right now is on the verge of a major breakdown," Gordon said.

In early trading Monday, Apple shares were up about 1 percent. (Get the latest quote here.)

Want to be a part of the Trading Nation? If you'd like to call in to our live Wednesday show, email your name, number and a question to TradingNation@cnbc.com.

Videos

Trades to Watch

Trader Bios

About

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

Connect