Netflix Inc. (NASDAQ: NFLX) opened with a negative gap yesterday, and traded lower to hit support fractionally below 467.00 before rebounding somewhat to close the session above that line. Overall, since July 1st, the stock has been trading in a sideways manner, staying between the 467.00, and the stock’s record peak of 575.24, hit on July 13th. With that in mind, we will adopt a flat stance for now.
A decisive break and a close below 467.00 could signal the downside exit out of the range and may turn the near-term outlook to the downside. Investors may then decide to allow declines towards the low of June 29th, at around 433.00, the break of which may extend the slide towards the psychological zone of 400.00, which provided decent support on April 29th and May 27th.
Looking at our daily oscillators, we see that the RSI turned down after hitting resistance near its 50 line, while the MACD remains below both its zero and trigger lines. Both indicators detect downside momentum, suggesting that the price may indeed fall below 467.00 soon.
On the upside, a break back above Wednesday’s high of 505.00 could mean that investors are willing to keep the price within the range for a while more. We may then see advances towards the high of September 1st, at 558.31, the break of which could result in a test at the stocks all-time high of 575.24.
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