Why Apple’s big rally could just be getting started

Apple shares have surged 47 percent since their May low, and are now at their highest level in nearly two years. But according to one top technical analyst, the tech giant's run isn't done yet.

"There's a little over 20 percent upside from here, so we like this stock," Craig Johnson of Piper Jaffray said Tuesday on CNBC's "Power Lunch."

According to Johnson's chart work, Apple had been trading in a range, bounded at the bottom by about $90 and on top by $130. Now that the stock has broken out to the upside, rising as high as $132.09 on Tuesday, the "measured move" theory holds that Apple's move out of the range will be about as large as the range itself.

This would "suggest a price objective in the $160's," Johnson wrote to CNBC. "Over the near term, look for shares to accelerate on the breakout and then pullback to retest what is now resistance and soon to be support."

Such a run would easily take Apple above its all-time high of $134.54, which was hit in late April 2015. It would also take the market value of America's largest company to about $850 billion.

Still, some are dreaming even bigger.

"The magic number to watch is about $190 per share," Eddy Elfenbein of the Crossing Wall Street blog said Tuesday on CNBC's "Power Lunch." At that level, Apple will be a $1 trillion company.


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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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