×

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.

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.

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.

Read more

Connect