Apple Inc. (NASDAQ: AAPL) is currently more than 10% down in the stock market compared to its year-to-date high of $143.16 per share (£101.17 per share) in the last week of January. On CNBC’s “Trading Nation”, however, TradingAnalysis.com founder Todd Gordon said that the upcoming weeks might bring a series of positive catalysts for Apple.
Gordon highlighted four reasons why he thinks it’s a good opportunity to buy Apple stock ahead of its worldwide developers conference scheduled for the first week of June.
1. Technicals
Apple has been in consolidation, during which the stock printed a five-wave pattern that Gordon sees as a sign that an upside move is in the offing.
“It looks like we could begin to push higher from this consolidation pattern. If we break below $116.20, this pattern is invalid. I would use that as a stop loss. I think the upside, using multiple projections that we use, gets you up just south of $200 in Apple. I think that could happen over the next six to nine months in Apple.”
2. Fundamentals
Fans of Apple Watch, iPad, Mac, and Apple TV are likely to get new operating systems for their devices at the annual developers conference next month. A redesigned MacBook Pro and a much-anticipated iPhone 13 are also rumoured to be launching later this year.
So, the fundamentals, Gordon said, all suggest that Apple is set to go north in the upcoming months. He also recapped Apple’s marketing-beating Q2 results and its 30% share in the market for 5G smartphones to further bolster his thesis.
3. Market dynamics
Gordon acknowledged the recent pullback in tech stocks but said:
