This FANG stock is about to break out: Trader

Traders have been sinking their teeth into tech this year.

The tech-heavy Nasdaq 100 had been trading within arm's reach of its all-time high for much of 2015, this as the Cramer-coined FANG stocks — Facebook, Amazon, Netflix and Alphabet — which represent nearly 15 percent of the index, have rallied an astonishing 36, 114, 153 and 44 percent, respectively year-to-date. Each of these tech giants has kissed an all-time high in the month of December, with the exception of one: Facebook. But according to one technician the social giant could soon soar into uncharted territory.

"This group of stocks have really supported a flat market in 2015," Todd Gordon told CNBC's "Trading Nation" on Thursday. The S&P 500 has been seesawing in and out of positive territory for the last few months. "I think that Facebook could potentially lead the market higher through the end of the year and into 2016."

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On a year-to-date chart of Facebook, Gordon noted that the stock has consistently traded in periods of consolidation and followed by rallies to new highs. And as the stock has traded in a sideways pattern since hitting an all-time high of $110.65 in early November, Gordon believes it could be on the cusp of a big breakout. "We see this consolidation here, and I think we could break to the topside," said the founder of

Using the measured moves from previous rallies, Gordon said he expects to see Facebook shares rise as high as $115 in the next few weeks. That's a 9 percent rise from the current price of around $105.60.

Wall Street tends to agree with Gordon that Facebook shares could soon surge. According to FactSet, of the 47 analysts that cover the stock, the average price target is $125.08 with a buy rating.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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