From a Department of Justice lawsuit to slowing iPhone sales in China, there are plenty of headwinds for Apple (AAPL) investors to worry about. Those worries are reflected in the stock price, which has fallen more than 10% so far this year. Could it be a buying opportunity?

Piper Sandler Managing Director and Chief Market Technician Craig Johnson argues "Apple looks like a pretty attractive place for people to park their money at this point in time," given that there is, he argues, a potential for a broader market pullback. Johnson acknowledges the company faces headwinds but is still a "high quality, blue chip company that's been doing very well for a very extended period of time."

Watch the video above to hear Johnson's four reasons why now is the time to buy Apple.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Stephanie Mikulich

Video Transcript

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- Apple continuing to be in what you could call a difficult period. The tech giant coming off its worst quarterly performance relative to the S&P 500 in over a decade as it's dealing with a high-profile antitrust battle with the Department of Justice, falling iPhone sales in China, and a regulatory investigation in the European Union to top it all off. Shareholders waiting for positive signs that could spur rotation for the tech giant. So to discuss what's next for Apple, we've got Craig Johnson Piper Sandler Managing Director and Chief Market technician. Craig, thank you so much for being here with us. Talk to me about what's next for Apple. Is there any potential for further downside from here?

CRAIG JOHNSON: Well, you know, there's a lot of headwinds. There's no question for Apple at this point in time. But when you step back and you look at the company overall, I mean, it is a very, obviously, high-quality blue chip company that's been doing very well for a very extended period of time. You could also add to the list of problems that handset sales have not been terrific in China. But at this point in time with a market that looks like it's setting itself up for a good 5% to 10% correction, Apple looks like a pretty attractive place for people to park their money at this point in time because it has got, A, a great balance sheet, B, a highly repeatable business model, C, good margins, and, D, I would say, they're buying back quite a bit of stock.

So if you're looking to put money in sort of a-- call it a safe-haven trade at this point in time and a company that's got a better balance sheet than the US government, you know, Apple is probably going to be the safe-haven trade. And when you look at the chart that we've got here this morning, you can see that you're still in a very nice longer term upward trending channel, you're now the midpoint of that channel. And from a risk reward standpoint, you've got probably about 10% downside, 20% upside. So despite the disappointment and underperformance this year, this could be a rotational stock for investors that are looking to hide.

SEANA SMITH: All right, Craig. We have one of the charts here up on your screen. You outline some critical levels that need to be watched here within some recent reports just in terms of the pullback that we have seen in Apple, whether or not it's going to test that October low of 16567. Craig, When we talk about whether or not the worst of it is behind it for Apple, is it fair to say that you think that is the case?

CRAIG JOHNSON: Well, from a pure risk reward standpoint, there's probably going to be further negative headlines coming with all these antitrust issues that get played out. That being said, thinking about differentiating the company from the stock itself, you look at the stock itself, again, you got probably 10% downside risk and about 20% upside, so 2 to 1 risk reward at this point in time. And also just note there's a lot of investors that have owned the stock over the years don't want to sell it for tax purposes at this point in time. So I think they're going to be pretty patient with the stock. And as the stock pulls back in here, I don't think you're going to get as much selling pressure simply because this is such a well-loved company and a company that's got such a solid balance sheet.

- So not only could the worst be over for Apple. But do you see a potential upside to Apple particularly as investors-- I know you've mentioned kind of trade in and out of the Magnificent Seven stocks. Is there a potential upside ahead here?

CRAIG JOHNSON: Yeah, absolutely. The stock could certainly trade back up to the upper end of the trading range, which is closer to 180. Again, that's a nice setup from here at these levels. And again there's new innovative products coming out, like the Apple Vision Pro. It's going to be small initially. But for those that have looked at that new particular product, it's a pretty impressive product with a lot of capabilities and certainly helps lay out the roadmap for what's ahead. So there are some positive things on the horizon for Apple that we shouldn't ignore.