Netflix's record-breaking rally rolls on.
The streaming service stock hit a new high on Tuesday for a fourth session in a row. The stock is up 33% in the past three months, benefiting from Covid-related lockdowns and quarantines.
Ari Wald, head of technical analysis at Oppenheimer, sees this as the beginning of an even bigger move higher.
"It's important to note that the stock is really just two months into a two-year breakout in trend as it has moved above its peak level from 2018. So we see runway for additional upside. Overall this is a breakout to stick with and buy more on pullbacks. We think Netflix is going higher," Wald told CNBC's "Trading Nation" on Monday.
"Strong trends are meant to break targets on the upside so whoever is highest on the street, I'd like to say put me $1 above them. In general, just looking at the breakout we're about to push … upper $500-$600 sounds reasonable to me looking at the next 12 months," said Wald.
A move to $600 marks another 21% upside from Netflix's current levels.
Danielle Shay, director of options at Simpler Trading, also sees Netflix headed toward its next milestone at $600 and eyes the next big catalyst.
"One major theme that I've seen as well is particularly surrounding earnings. We have an earnings report coming up in Netflix next week, and with a lot of these Covid names we have seen those tickers just continue to get bid as investors pile into them in anticipation of a positive earnings report due to coronavirus," Shay said during the same segment.
Netflix is scheduled to report July 16. It is expected to post earnings of $1.81 a share for the three months to June, up from 60 cents in the year-earlier period, according to FactSet.
"It could possibly hit the $550 in the next week and a half, which is a little bit lofty I know, but absolutely on the longer term I think it's going to continue to $550 and upwards to $600," said Shay.
Disclosure: Shay holds Netflix.