Apple could soar to new highs off earnings this week, says top technician 

It's been a scary October for tech investors, but there's one stock that's managed to buck the trend: Apple.

Shares of the tech giant are down just more than 4 percent since the start of the month, faring better than the broader tech sector, which has fallen nearly 10 percent in the same time frame. This comes as other tech darlings have plunged into corrections and bear market territory. Names like Facebook and Alphabet are down 12 percent, while Netflix and Amazon have plummeted more than 21 percent this month.

According to Carter Worth, head of technical analysis at Cornerstone Macro, the charts are suggesting a breakout for Apple when it reports earnings later this week.

"It peaked as far back as 2014 and just now is Apple actually starting to outperform the market of which it is the biggest component," he said Friday on CNBC's "Options Action." "That's a positive and we're going to make the bet that Apple is going to be OK post-earnings."

Shares of the iPhone maker have jumped more than 21 percent since 2016 and they are the second best-performing Dow stock this year. Despite the gains, Apple is still down more than 6 percent from its all-time closing high of $232.07 from earlier this month.

However, Worth notes that the stock's ability to stay within its upward trend channel in the past two years suggest Apple is "going to move toward the top end of the range."

"The bet is we break out of this apex and we make it back to the former high. That would be about a 5 percent move which would get you back to the high of Oct. 3."

Apple is set to report fiscal fourth-quarter earnings after the bell Friday, and its stock was down slightly Monday afternoon, at around $216.

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  • Melissa Lee

    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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