It's time to buy Apple (AAPL) - Get Report again. The technical charts show a bottom was reached and the stock, currently at $98, is heading back to $105.

Shares of the iPhone maker have risen about 10% since bottoming out at $89.47 on May 12. It surely helped the company got $1 billion in investment from Warren Buffett's Berkshire Hathaway (BRK.A) - Get Report (BRK.B) - Get Report .The "Buffett effect" has pushed Apple stock back above its critical 20-day moving average of $94. 

Thanks to a rise of almost 5% rise in the past five days, Apple shares are now down about 7% so far on the year -- still in bearish territory, which is defined as when a stock is down at least 20% below its 52-week high. In this case, shares are down 26% from the 52-week high is $132.97. 

TheStreet's Jim Cramer has long said that Apple is a stock you hold, not trade. In a recent note Cramer and Jack Mohr, research director for Action Alerts PLUS, which holds Apple, see a number of catalysts that will push the stock higher including the expected September release of the iPhone 7 in the back half of the year and Apple's investment in China's version of Uber.

Also, for those who believe in the Oracle of Omaha, they noted Berkshire Hathaway is "the consummate value investor, investing in high-quality companies it believes to be trading at a discount to their intrinsic value." AAP maintains a $130 target on Apple stock.

Apple is a holding in Jim Cramer'sAction Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AAPL? Learn more now.

Right now Apple shares have a consensus buy rating and an average 12-month price target of $120, suggesting 22.6% gains from current levels. With much of the bad news about slowing iPhone growth out of the way, Apple's fundamentals offer no more surprises.

From a technical perspective, AAPL now has more upside potential than downside risk, as seen in the chart below, courtesy of TradingView.

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Apple stock is no longer broken. As you can see from the three small black arrows above, the stock began reversing course from its decline after bouncing off its support at around $90 per share (solid blue line). Shares are shaping up for a strong move back towards near-term resistance $101 per share (thin red line) and on its way to mid-term resistance at $105.19 (solid red line).

The first move will push the stock back up 100-day average at $100.19 (yellow line), while the second move will break the 50-day at $102.27 (pink line). The chart shows the stock is forming a trend to refill the 7% gap created when its reported weak second-quarter earnings.

How to execute the trade: Buy Apple stock between $97 and $98, using Monday's close of $96.43 as near-term support. If it falls below that level, average down, betting that Apple has bottomed and is ready to move towards resistance at $105 for an 8% gain.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.