Netflix (NFLX) has been working its way back up the rankings in the SIA S&P 100 Index Report for the past year. Starting at the bottom of the red zone, Netflix returned to the Green Favored Zone in February for the first time since August of 2020. NFLX then dipped back down into the red zone but with yesterday’s 9.2% gain which was ignited by subscriber growth numbers at the company’s upfront presentation to advertisers, the shares have returned to the Green Favored Zone. Currently, NFLX is in 26th position up 16 spots yesterday and up 30 places in the last month. Since bottoming out a year ago near $160.00, Netflix shares have been under renewed accumulation, steadily recovering lost ground, establishing an uptrend of consistently higher lows and completing a bullish Golden Cross. Recently, the shares have launched up off of their 50-day moving average and are challenging resistance near $380.00.
A breakout from here would complete a large bullish ascending triangle base and confirm the start of a new uptrend. On a breakout some initial resistance could emerge near the $400.00 round number but a measured move suggests the potential for resistance near the $475.00 level, or even the $500.00 round number. Initial support appears near $350.00, a round number and recent breakout point.
Netflix (NFLX) shares have been under accumulation for a year now, steadily clawing back losses from a major early 2022 selloff. Over this time, NFLX has established a new uptrend of consistently higher lows and completed a number of bullish patterns. Currently, the shares are on a bullish Double Top Signal that would extend into a bullish Double Top on a close above $372.45, which also would carry the shares to their highest level since March of 2022.
Upside resistance zones on trend appear first in the $400.00 to $403.15 area based on a round number and a vertical count, followed by $454.00 to $472.35 where vertical and horizontal counts plus column highs and lows cluster. Initial support appears near $337.35 based on a common 3-box reversal.
With its bullish SMAX score increasing to a perfect 10, NFLX is exhibiting strength across the asset classes.
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