logo

Apple is 'still a cash machine,' strategist says

VIDEO2:1702:17
Apple on the rise?

Even as Apple shares surge to multimonth highs, strategist Max Wolff sees further gains ahead.

"We think there's still some sweetness, and not much vinegar, in the cider here," the chief economist at Manhattan Venture Partners said Monday on CNBC's "Power Lunch. "

Wolff said a growth in services outweighs drawbacks like weak iPad and MacBook sales.

"We think this is still a cash machine, still a huge margin story."

Apple shares rose to the highest level since April on Friday, days after reporting quarterly earnings and revenue that topped analysts' expectations. On Monday, it closed 1.77 percent higher but it was down slightly in premarket trading Tuesday.

Technical analyst Ari Wald of Oppenheimer said Monday the charts also look bullish.

Wald pointed to one chart showing a recent rally after year-over-year decline — a pattern he sees as an "island reversal."

In April, the stock gapped below the $101 mark, and following its earnings last week gapped above it, trading about $105. This type of pattern indicates "selling exhaustion," perhaps marking a bullish reversal in its trend, Wald told CNBC.

He said this sets up a rally headed into a resistance level of $112, which was a high from earlier this year.

Even if the stock doesn't rise to $112, however, it could still be a smart buy.

"We see this as a winner going forward, as a safer place for your money," said Wolff, who is bearish on the overall market.