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.

Related Link: iPhone SE, Smaller iPad Pro Highlight Apple's March Event

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.

Posted In: Dragonfly CapitalGreg HarmonCNBCLong IdeasTechnicalsMediaTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.