Apple stock has been floundering for the past 11 months, falling nearly 22 percent since its high of $134.54 in April 2015. But according to one market technician, the shares are setting up for a huge move higher.
"Momentum is in favor of the stock," Greg Harmon, founder and president of Dragonfly Capital, said Wednesday on CNBC's "Trading Nation."
By Harmon's work, the tech giant's shares are setting up for a textbook bullish technical pattern. Specifically, he says they are forming what's called a "cup and handle" pattern. Technicians often look to such patterns as catalysts to buy stock.
The cup and handle pattern he refers to assumes a "u" shape in the stock price (the cup) followed by a smaller additional pullback (the handle) and ultimately an enormous surge higher.
"That pattern looks for the price to move up to $114 in the next three to four weeks," he said.
Longer term, Harmon remains even more bullish on the stock. He sees a 66 percent move higher in the next 18 months.
And he's relying on another classic pattern that he believes could portend even more gains for the largest U.S. tech stock.
Specifically, he says Apple shares are setting up for an AB=CD pattern, which means measured long-term moves that are setting up to repeat. This theory, which Harmon says is "backed up by the upswing in momentum," projects a target for Apple stock of $170 by the end of 2017.
"The stock price has bounced off its 200-week moving average, which started the initial runup in July of 2013," said Harmon. "And it looks like it's setting up to be something similar again now."