Apple is in the green and trading close to record highs.
Apple has steadily climbed over the last month, up over 6% and now trading about 3% from record highs, but MKM Partners chief market technician JC O'Hara thinks the stock may need to slow down before speeding up.
"Longer term, this is one of the best stocks out there," O'Hara said on CNBC's "Trading Nation" on Wednesday. "The chart's up 45% year-to-date, far outpacing the S&P and above every major moving average. So, longer term, I think the chart is very constructive."
Apple rose 1% about $227 on Wednesday after analysts at Canaccord Genuity raised its price target to $260 and TF Securities saying the company is planning hardware releases for the first half of 2020.
While O'Hara likes Apple longer term, he a little concerned near term.
"Short term, Apple is slightly overbought and it's overbought as it's approaching the 2018 highs at $230. That's going to be an area of resistance. So we have an overbought stock at resistance, and that's not the best recipe for a stock that's ready to break out. So tactically, I would love to see the stock pull back a little bit. I think $215 is a great area. That's where the rising 50-day moving average is. That's where horizontal chart support is. I think that is the area where it will make sense to buy a position or to add to an existing position because at that level. I think Apple will be in a much better technical shape to break out and to make all-time highs."
Michael Bapis, managing director at Vios Advisors at Rockefeller Capital, agrees the stock could be poised for a breakout and thinks buying it here is a good idea.
"They continue to be the most innovative company in this technological revolution that we're living through," Bapis said in the same interview. "The iPhone 11 sales were better than expected. They're coming out with the 5G phone in 2020. They dominate the market share in all four major wireless networks. They have multiple devices in many households across the country."
Bapis, however, thinks what makes Apple most attractive is that it's a hardware and services company.
"That services side of the business is what's going to drive the revenues and the earnings, and that's why we think they're still cheap trading at 17 times earnings, with a 1.3% dividend yield." … "You're going to look back in 18 months and it's going to be cheap right now."