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Cramer thinks investors should take a long, hard look at patterns emerging in the daily and weekly charts of Apple and Twitter.
Although the Mad Money host always believes fundamentals should inform any stock decision, he also believes technical analysis can provide valuable insights as you attempt to confirm a thesis.
And looking at Apple and Twitter, a convergence of patterns noted by top technical analyst Carolyn Boroden, suggest the path of least resistance may be higher in both cases.
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Apple
Looking at weekly chart Boroden first noted that shares ran into strong resistance around $575 and then tumbled to current levels. Although Boroden concedes that Apple may continue to fall a little, chart patterns suggest the stock is near its bottom.
Turning attention to the daily chart, Boroden sees over a dozen Fibonacci relationships forming a powerful floor of support somewhat near current levels.
Specifically, Boroden sees a floor running from $522 to $531. However, if that doesn't hold, she sees another floor of support from $502 to $511. And if neither of those levels hold, she says there's a third floor $490 to $498.
That kind of support suggests the stock probably won't go much lower.
However, she's not quite ready to pull the trigger yet.
Her analysis also shows that recent upswings in Apple have not lasted for more than $13.89 of upside. Therefore, before she would bet on a rally, Boroden wants Apple to demonstrate that it can put up a sustained rally, with a swing higher greater than $14.
If and when that happens, then she's looking for a long-term rally,
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Boroden has a near-term price target of $587 – $603 and longer-term she sees the stock heading to $792.
Cramer thinks the technical confirm fundamentals. That is, he believes the appeal of the new iPhone as well as the recent deal with China Mobile should drive profits and a subsequent advance.
However, as Boroden noted, Cramer also thinks shares could decline a little before ultimately rallying. "Mall traffic has been weak broadly," he said, " and that could generate headwinds in the near-term."
Boroden also sees a constructive pattern in Twitter. Specifically, she sees support running from $54 to $56. And if that doesn't hold she sees a second floor from $51 to $53 and change.
If either of these support zones hold, her analysis further suggests Twitter could rocket up to $79 in the not-too-distant future.
"Goldman Sachs, the banker behind Twitter's IPO, raised its price target today, saying business is accelerating," Cramer noted. "So there's a fundamental peg to the story, too, although I still regard it as outrageously expensive versus every other cloud, social and mobile play."
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