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Why Apple’s big rally could just be getting started

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Trading Nation: Apple surges to 2-year high

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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