Apple could hit new highs very soon, technical analyst Todd Gordon said ahead of the tech giant's earnings report, which is coming after Monday's closing bell.
On CNBC's "Trading Nation," Gordon Friday said he sees Apple well above $140 a share. Midday Monday, it was trading at $132.72.
"Apple has been in a beautiful uptrend for the past year," he said. Shares of the tech giant are up more than 60 percent in the past 12 months and sitting just a hair away from an all-time high. "I see the potential for some nice upside."
Looking at a one-year chart of Apple, Gordon pointed out that the stock has moved in a series of consolidation periods.
"Markets generally don't trade in a straight line," said Gordon, noting that Apple is no exception. "You can see the stock tends to take three steps forward, followed by two steps back. And the great news is, we just completed that two steps back."
According to Gordon, Apple shares are consolidating into what technicians call a wedge pattern, or triangle. Technicians typically consider this a bullish pattern as stocks often follow the direction of the wedge. In the case of Apple, that's higher.
Either way you slice it, said Gordon, "Apple is going higher."
Analysts are expecting the company to earn $2.15 per share, according to FactSet.
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.