Virtus Investment Partners' Joe Terranova just bought Netflix Inc (NASDAQ:NFLX) for a trade, he said Wednesday on CNBC's "Fast Money Halftime Report."
Netflix currently has a "very very clear and strong tailwind behind it," Terranova said. The stock has had 13 consecutive higher closes over the last 14 trading sessions. Terranova aims to capitalize on the momentum in the stock over the last 14 days.
"What it's setting up for is a long-awaited breakout above the Jan. 20 high at $593," he said.
If the stock is able to break out above the $593 level, Terranova expects it to trade up to $625 or $650.
The setup is the exact same as what happened with Amazon.com Inc (NASDAQ:AMZN) before it broke out of its trading range, he said.
If the stock breaks out above $593 he plans to hold the trade until it reaches the $625 to $650 range, but if it fails to break out, the $540 level is one to watch on the downside, Terranova said.
"From a technical perspective, there is no better chart right now that I can find as it relates to the mega-cap technology names."
NFLX Price Action: Netflix has traded as high as $593.28 and as low as $458.60 over a 52-week period.
The stock was up 3.49% at $589.03 at time of publication.