The stock market has erased the December sell-off as it heads back to record highs.
One of those stocks has an interesting setup, says Ari Wald, head of technical analysis at Oppenheimer.
"With Roku, it's more positive than not, more so on a long-term basis," Wald said on CNBC's "Trading Nation " on Monday. "From a near-term trading basis, though, this stock still could come in a little bit. I think you could be patient with it."
Wald is watching two key levels: $60, which corresponds with its 50-day moving average, and $53, which lines up with its 200-day average. It was at $60.60 in Tuesday's premarket.
"You can see that 200-day is trending higher so that would be indicative of a rising trend, but trading wise … you might have some downside risks to that level first," said Wald.
Gina Sanchez, CEO of Chantico Global, sees both pros and cons to Roku.
"If you look at the bull case for Roku, one of the big points is that it is stream platform agnostic, so more people make apps for Roku," Sanchez said on the same CNBC segment. "But the bear case is that you're getting increasing competition from Apple and Google."
Sanchez says Roku has the most to gain from expansion into international markets, though it would face tough competition from Samsung. The streaming platform generates all its revenue domestically.
Roku is up 131 percent from its late December low. However, it remains in a bear market, having fallen more than 20 percent from its 52-week highs.