A specific pattern is playing out once more in the charts for Netflix, and Evercore ISI technician Rich Ross says that its repeat signals a breakout for the video streamer.
Ross said Wednesday on CNBC's "Trading Nation" that Netflix's last big rally, which unfolded in 2015, took place when the stock was trading in a range and then bounced after hitting its 100-week moving average. Netflix had been trading between the mid-$40s and high $60s for all of 2014, the "trading range" Ross refers to, before meeting its 100-week moving average line at the start of 2015. The stock then surged 170 percent in the following months.
And now, the technician believes that Netflix shares are currently repeating the same pattern from 2014-2015. The stock has traded in an "18-month trading range" and bounced off its 100-week moving average this past May.
"We have this well-defined trading range, this pullback into the 100-week moving average, and a strong move coming out," explained Ross. "So I think we're going to take out the high end of this trading range and move significantly higher for the stock."
With Netflix sitting at about $128 on Wednesday, if Ross' prediction is correct, Netflix is set to overtake its all-time high of $133.27, which it hit back in December 2015.