Why history suggests that a major surge is ahead for Apple

After a stunning post-earnings slide that brought Apple shares to their lowest level in nearly two years, the stock has jumped some 10 percent. And according to one technical analyst, the stock's gains are set to accelerate from here.

To get a sense for what the future will bring, Rich Ross of Evercore ISI looks to the past.

Back in 2013, "we had a 40 percent decline that held the 200-week" moving average, before "we put in that nice double-bottom base of support, and we had a fantastic rally off the 200-week," Ross said Wednesday on CNBC's "Power Lunch."

"Fast forward to today, [there is a] 33 percent decline [and a] double bottom on the 200-week moving average. I think you could be set up for a similar type surge."


The shorter-term chart looks bullish as well, according to Ross. He points to a "false breakdown" below an important level of support. In the days ahead, Apple could be primed to rise to its 200-day moving average at around $107, he posited.


From a fundamental perspective, Manhattan Venture Partners chief economist Max Wolff thinks that Apple is a worthy investment.

"I think the super-growth period is over because they really got a huge kick up [and] it's going to be hard to get the bounce again," he said Wednesday. "That being said, it's oversold, it's still a great company and it's still a cash machine. It's not as exciting as it used to be and maybe the free press and adulation is over, but at this price," it presents a compelling value.

On Wednesday, Apple logged its fourth straight winning session, and the stock had a substantial positive impact on the Nasdaq 100 index. Still, the stock has lost a quarter of its value over the past year.

Read MoreThe real reason Apple shares dropped below $100

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