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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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

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