Evercore's Charts Suggest Netflix To Touch $730 Soon

With over 30 percent gains in the last three months, shares of Netflix, Inc. NFLX are flying high and according to Rich Ross of Evercore ISI, the technical pictures suggests that they will continue to move higher from here.

Ross was on CNBC recently to provide the technical outlook on Netflix’s stock going forward.

Poised To Move Higher

“I think that the stock goes much higher [from] here,” Ross said. He feels that people who tried to short Netflix, but had to cover their shorts when the stock moved higher made a wise decision. “On the short side, your first loss is your best loss as they say and I think that’s going to be the case here in Netflix as this stock moves higher.”

The Technical Picture

“When we look at that short-term chart, we see a text book pattern and form that tells us that the stock goes higher,” Ross said. “You see that stair-step pattern which is comprised of sideways trading ranges punctuated by upside breakouts followed by another trading range and breakout and trading range and so on -- you get the picture.”

He continued, “That stairway gets us higher and when you zoom out, you look longer term the picture gets even better. You see this very well-defined sideways trading range that we had been in for just about 18 months. We broke to the upside in decisive fashion last quarter back in March.”

“We go higher from here, you see that little bullish flag that’s formed on that weekly -- that’s a continuation pattern to the upside. I have a measured target of $730 on this stock. I think, we get there. I like Netflix,” Ross concluded.