Apple shares have fallen more than 2 percent from its recent high, but one would be wise to buy the dip, says Todd Gordon of TradingAnalysis.com

According to Gordon, Apple has actually fallen into a “corrective support,” where the stock is sitting in the middle of an uptrend parallel channel, suggesting it is neither overbought nor oversold.

The upper limit of that channel, says Gordon, is around the $185 to $190 level, which he says Apple could reach this month. That’s about 8 to 11 percent move higher from current levels of around $170.

His positive outlook on Apple lies with the stock’s near-term moves. While earlier this week Apple had slid back to the late October support level of $165, he does see “a three-step pattern” that suggests the stock will soon bounce higher.

“We did take out the lows from last week and triggered some sell stops, [there was some fear in the] market but then you can see Apple recovering nicely here,” he said Thursday on CNBC’s “Trading Nation.” “It looks like we should be able to move on up towards the $180 level into late 2017 and early 2018, and perhaps reach $190 to $200, which will take Apple to a trillion dollar market cap.”

To take advantage of the possible rally in Apple, Gordon sold the Dec. 29 weekly 170-strike puts and bought the Dec. 29 weekly 165-strike puts for a credit of $1.58, or $158 per options spread. This $158 is his maximum reward for the trade, which he would get if Apple closes above $170 on Dec. 29 expiration.

“If we break back below these highs at about $165, I’m going to start being concerned about the outlook for this breakout,” he said. “I really want to see this former resistance hold now as support. If we break through $165, close the trade.”

Apple has surged 48 percent this year.