Todd Gordon's Apple Analysis: Sell If It Hits $123.50

Todd Gordon spoke on CNBC's Fast Money about Apple Inc. AAPL. He analyzed the stock from a technical standpoint and he concluded that it would be wise to sell the stock if it reaches $123.50.

Gordon presented a weekly chart of NASDAQ Composite and he showed that it moved 17 percent higher in the early 2016. After the move higher it pulled back and now it made another 17 percent move higher. According to a technical technique called a "measured move", current price level should act as a support.

Related Link: Fast Money Traders Share Their Thoughts On Cisco And Apple

Gordon also did a candle chart analysis and he concluded that a current weekly candle is engulfing two previous candles and if the NASDAQ Index closes the week below 4,786, the current candle is going to engulf three previous weeks. He sees this as a reversal sign.

Apple has been underperforming the NASDAQ Index, said Gordon and he sees $123.50 price level as a resistance for the stock. If it moves higher to its resistance going into earnings, he would sell the stock for a short-term trade.