The Netflix stock (NASDAQ: NFLX) has been in a retreat mode since October 14th, when it hit resistance slightly below its all-time high of 575.24, reached on July 13th. Overall, the stock looks to be trading in a trendless mode, stuck within a range between that level and the 467.00 support, since July 1st. With that in mind, and also taking into account that the company reports its quarterly earnings today, we will take a neutral stance for now.
In order to start examining the bullish case, we would like to see the price breaking above its record of 575.24. This would confirm a forthcoming higher high and may initially target the psychological round figure of 600.00. If the bulls are not willing to stop there, a break higher may see scope for larger extensions, perhaps towards the 645.00 zone, which is the 161.8% Fibonacci extension level of the width of the aforementioned sideways range.
Shifting attention to our daily oscillators, we see that the RSI runs above 50, but points down, while the MACD, although above both its zero and trigger lines, shows signs of topping. Both indicators detect slowing upside speed and suggest that there may be some more retreat within the range before, and if, the bulls decide to take charge again.
For the outlook to turn bearish, a break below 467.00 is needed, we believe. Such a move would confirm a forthcoming lower low and may target the low of June 29th, at 433.00. Another break, below 433.00, may extend the slide towards the round number of 400.00, which provided decent support on April 29th and May 27th.
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