Apple stock has been floundering for the past 11 months, falling nearly 22 percent since its high of $134.54 in April 2015. But according to one market technician, the shares are setting up for a huge move higher.
“Momentum is in favor of the stock,” Greg Harmon, founder and president of Dragonfly Capital, said Wednesday on CNBC’s “Trading Nation.”
By Harmon’s work, the tech giant’s shares are setting up for a textbook bullish technical pattern. Specifically, he says they are forming what’s called a “cup and handle” pattern. Technicians often look to such patterns as catalysts to buy stock.
The cup and handle pattern he refers to assumes a “u” shape in the stock price (the cup) followed by a smaller additional pullback (the handle) and ultimately an enormous surge higher.
“That pattern looks for the price to move up to $114 in the next three to four weeks,” he said.