All eyes in the tech world are on Apple, which is expected to unveil three new iPhone models on Wednesday at its annual product launch.
Not all investors are fazed by the hotly anticipated event. Mark Newton, president and founder of Newton Advisors, sees a sharp pullback in Apple's near future.
"Apple still looks very good on an intermediate-term basis. My concern really is with the near term," Newton told CNBC's "Trading Nation" on Tuesday. "It's gotten very, very overbought in a short period of time. When you look at gauges of technical momentum like the relative strength index, RSI, it's gotten above 70 on both the weekly and a monthly basis."
Apple's RSI reached above 80 at the beginning of September after the company closed out its best month since April 2009. Any reading above 70 generally indicates overbought conditions.
"I'm really playing for a pullback down to near $205 which is about 6 to 8 percent lower than where we have it, and that would really be a much better place for people to consider buying dips," said Newton.
Apple came under some weakness in recent days following warnings over the impact of the Trump administration's tariffs. Since Friday's open, shares have dropped more than 2 percent. However, Gina Sanchez, CEO of Chantico Global, says Apple is best suited to bounce back from any short-term trade impact.
"Apple is one of the few companies that throughout this very wageless recovery that we've seen over the last 10 years, they've actually maintained pricing power which suggests that demand for Apple is more inelastic than you might think," said Sanchez. "You can put a tax on that, which is what a trade tariff is, and people will still buy it."
Bank of America analysts warned on Monday that $200 billion in proposed tariffs on Chinese products could be "materially demand destructive." The tariffs would likely affect the Apple Watch and AirPods.
"If you consider the trade tariffs a short-term story, I think Apple still has a long-term future," added Sanchez.
