Ross pointed out that the despite a sharp pullback in 2014, where the shares fell 22 percent, the stock has held its key long-term 150-week moving average. Importantly, after bouncing off of the 150-week moving average, Ross noted that the stock then put in a series of flags or pennants. These types of charts are formed by a sharp movement followed by sideways consolidation. According to Ross, there are two distinguishing bullish flags on the Amazon chart.
"If history repeats itself we are going to get a move out of this pattern that mirrors the prior move of about 70 points," said Ross, head of technical analysis at Evercore ISI.
Ross expects Amazon shares to soar as high as $510 in the near term, a nearly 10 percent move from the current level. "With earnings next week we could see the fundamental catalyst that gets the stock going to that $510 technical price target."
Amazon is set to report results next Thursday after the closing bell and analysts surveyed by FactSet expect the e-commerce giant to post earnings of 15 cents per share on $22 billion in revenue.
The stock was down less than 1 percent in midday trading Wednesday.