Netflix is selling off again heading into earnings this week.
Its shares traded more than 1 percent lower on Monday, adding to the 15 percent drop over the past three months.
The stock is susceptible to another bout of volatility, which could mean even more weakness ahead, Carter Worth, head of technical analysis at Cornerstone Macro, said on CNBC's "Options Action" on Friday.
"Since basically the spring and summer of 2016, over the past two years, we've had major sell-offs," he said. "The question is, is this just a very volatile stock — of course, it is — but is it out of the woods on this next earnings print?"
Since May 2016, Netflix shares have endured nine double-digit pullbacks. Its most recent has pulled it 21 percent lower than highs set in June.
"Put in the trend line that effectively has been in play for the past two years. The thinking here, from my point of view, is that we are going to come back to trend, that the head-and-shoulders top is in effect, and that would take us down," he said.
Netflix's charts have formed a head-and-shoulders pattern this year, a reversal chart formation that signals a bearish trend. It consists of a higher high, another higher high, and then a lower high. This suggests a turn from bullish to bearish.
"My hunch is that there's more risk than there is opportunity," added Worth.
Recent weakness aside, Netflix remains one of the best-performing stocks this year. It is up 74 percent year to date in the best advance of the XLC communication services ETF.
Netflix is scheduled to report after the bell Tuesday.