Apple pullback aside, the chart is still very much intact

Despite mounting pressures over its iPhone X, Apple is still a compelling buy, according to Craig Johnson of Piper Jaffray.

A report by Taiwan's Economic Daily earlier this week that Apple would cut its forecast for the iPhone X sent Apple shares tumbling 2.5 percent on Tuesday. The stock failed to recover from those losses on Wednesday morning. But the technician says that based on his charts, the stock still has far to go before it's in trouble.

"From my perspective, we've got nothing wrong with the chart," Johnson said on CNBC's "Trading Nation" on Tuesday. "So all we've done is seen a little bit of profit-taking here."

"We'd have to see a close below $165 to violate the uptrend support line that has been in place for more than a year, and break $155 to take out the 40-week moving average," he added.

This means that Apple would still need to fall another 9 percent for Johnson to believe it might be time for investors to think about selling the tech giant.

Chantico Global CEO Gina Sanchez, however, believes that fundamentals are suggesting that the iPhone supercycle may be over.

"Apple is fulfilling their [iPhone X] orders on a next-day basis, which tells you that there's no wait time anymore," she said on "Trading Nation." "That's probably not a good sign for Apple."

"This is a strong franchise, and I think they still have lots of ways to monetize what they have, but it's probably a wait-and-see right now," she added. "[The stock isn't] expensive, [it's not] cheap, the fundamentals are going to reign, but we still don't see any big catalyst."

Still, Apple has surged 47 percent this year.


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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.

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 CNBC and 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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