Apple’s doing something very rare and that could send it to new highs

Investors may want to take another bite out of Apple if one technician's chart predicts correctly.

Piper Jaffray technical analyst Craig Johnson looked at a long-term chart of Apple on Wednesday on CNBC's "Power Lunch." While Apple is currently on its longest winning streak since February 2015, Johnson sees more room to run in the next months.

Johnson says that while Apple now sits lower than its May 15 highs, the stock has found "really good support around $90." The stock closed at $117.34 on Wednesday, within $3 of Johnson's previous price target of $120.

Here, Johnson believes that Apple may take a short-term dip once the stock hits $120, but he predicts that the stock is actually set to return to the May highs in the next few months.

"I'd look for some profit taking to come in at that point in time, look for the drift back a little bit," said Johnson. "But ultimately, looking out six to 12 months, I see a retest of the highs you see in May of 2015, that would take the stock back up to about $130."

In other words, Apple could rise another 11 percent in the coming months.

Apple is up about 11.5 percent this year, fueled by the release of a new iPhone and other products.


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Brian Sullivan

Brian Sullivan is co-anchor of CNBC's "Power Lunch" (M-F,1PM-3PM ET), one of the network's longest running programs, as well as the host of the daily investing program "Trading Nation." He is also a frequent guest on MSNBC's "Morning Joe" and other NBC properties.

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