Apple Going To $170, Greg Harmon Says

Greg Harmon, Founder and President Dragonfly Capital, appeared on CNBC last week and explained why he believes shares of Apple Inc. AAPL will hit $114 over the next three or four weeks, and $170 over the long term.

“Over the February-to-March timeframe, Apple put in a double bottom,” retesting the August lows, Harmon said. Now, there are two patterns emerging on the stock’s chart: the cup and handle and the AB=CD pattern.

A Technical Look

A cup and handle pattern is usually interpreted as a bullish signal, an indicator that a stock should be bought. The chart assumes a "u" shape (the cup), followed by a smaller extra pullback (the handle). After that, shares tend to surge substantially. This pattern suggests that the stock will be trading around $114 in a few weeks, Harmon said.

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The second pattern suggests the stock will rise over the long term (about 18 months). The AB=CD implies that certain long-term oscillations are set to repeat. "The stock price has bounced off its 200-week moving average, which started the initial runup in July of 2013… And it looks like it's setting up to be something similar again now,” Harmon stated. Although there are no guarantees, he concluded that momentum seems to be in favor of the stock.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.