Amazon’s amazing rally will continue – and this chart shows why: Technician

Trading Nation: Amazon hits all-time high
Midcaps hit all-time high
Historical chart suggests tough weeks for market

Amazon's stock has soared for years, and according to one technician, the fresh all-time high it hit Tuesday will soon be surpassed once again.

The online retail giant hit $789 on Tuesday, its highest level ever, going back to the company's IPO almost two decades ago. But Amazon won't stop there, according to Evercore ISI technician Rich Ross, who believes that at this point, it's "just a matter of when to buy Amazon, not if."

Looking at a short-term chart of Amazon on Tuesday on CNBC'S "Power Lunch," Ross points out that the stock has already far exceeded a trading range that topped out just below $700 for almost a year. What's more, the stock also hasn't broken below its 50-day average, even when Amazon dropped following the Brexit vote, which Ross describes as a "test of strength."

On a longer-term chart of Amazon, Ross also points out that though Amazon has consistently seen pullbacks of over 40 percent after hitting highs, the stock is still seeing a "never-ending stream of all-time highs" that don't ever fall below the 150-week moving average.

Overall, these technicals lead Ross to believe that the stock could surge another 14 percent, taking Amazon to $900.

But not everyone thinks that Amazon's heydays are still ahead. Eddy Elfenbein, editor of the "Crossing Wall Street" blog, thinks the stock is too volatile for many investors to bet on.

"Earlier this year it lost a third of its value in just six weeks, so traders looking at this stock have to remember the nature of the company that Amazon is," he said. "It can move so quickly and things can change very rapidly with this company."

Still, there is no arguing with its track record. According to Elfenbein, the stock has averaged a 1 percent gain for every 11 days it has traded since its IPO — contributing to its 40,000 percent rise as a public company.

Amazon is up nearly 17 percent in 2016, and finished the day at just below its high of $789.