Netflix, Inc. (NFLX) Technical Analysis

Price Action Analysis

Overview

• The current price for NFLX is around $94.15. The day’s range was roughly $93.63 to $94.97, with the prior close near $94.47.
• On the daily timeframe, price has been grinding lower while oscillating in a broad range. The most recent action shows a continuation of the near-term softcloth with the pair testing the low- to mid-$90s region again.
• On the weekly timeframe, the longer-term view remains bearish from a multi-month perspective, with price having cycled from a high in the mid-to-upper $120s down toward the mid-$90s region. The trend is more clearly characterized by lower highs and lower lows over the last several weeks to months.

Price structure observations

• Trend direction: Near-term downtrend with congestion in the $92–$100 zone; longer-term trend still bearish given the distance below long-term moving averages.
• Support/resistance: The area around $92–$94 has repeatedly acted as near-term support in recent sessions; the area around $100–$105 has capped rallies in the past; stronger resistance sits closer to the prior swing highs around the $110–$115 zone.
• Candlestick tendencies: The daily candles show meaningful wicks on down days, signaling intraday buying interest near the lows, but follow-through closes have remained weak, suggesting a lack of conviction for a sustained rally.
• Volume behavior: The daily volume shows episodic spikes during downside moves, with occasional lighter periods in consolidation. This pattern is consistent with distribution during declines and a potential base-building phase as selling pressure wanes, but not a clean breakout yet.

Trendline context (visual reference)

• Support line: drawn near $92.0 to reflect the recent basing area.
• Immediate resistance line: drawn near $100.0 to represent the near-term hurdle for upside progress.
• Key upper resistance: drawn near $110.0 to reflect a historically significant ceiling before the prior move higher.

Technical Indicators

(Compact summary table)

Indicator	Current Value	Key Interpretation	Implication for NFLX
Price (current)	$94.15	Near-term basing around the mid-$90s	Cautious; needs a break above resistance for a sustained rally
50-day MA	$105.60	Price below this MA	Bearish bias; requires close above ~105–106 to improve trend parity
200-day MA	$113.40	Price well below this MA	Long-term downtrend in play; notable upside required to shift regime
RSI (14)	39.8	Neutral-to-bearish momentum; not yet oversold	Room to bounce if momentum turns higher; watch for >50
MACD	-$3.70	Negative momentum, but slowly improving	Potential near-term bullish crossover if MACD remains above the signal line
MACD Signal	-$4.10	Signal line below MACD	Weaker baseline; improvement suggested as MACD tightens toward zero
MACD Histogram	0.40 (approx)	Positive divergence from MACD line	Slight near-term upside pressure; confirm with price action

Notes

• All indicator values are the latest available from the referenced session data. The MACD shows a negative but gradually improving momentum, while RSI remains in the lower half of the range, implying limited upside until a directional move develops.

Volume & Momentum Analysis

• Momentum context: The price is trading well below the major moving averages, indicating persistent bearish momentum on a longer horizon. The current RSI reading around the mid-40s-to-40s territory suggests that momentum remains modestly bearish, with some room for a near-term rebound if buying interest increases.
• Volume context: There have been sporadic volume surges during downside episodes, consistent with distribution during stronger selling and a period of potential capitulation. In the latest sessions, volume has been more subdued, aligning with a possible basing phase rather than a fresh breakout phase.
• price action motif: A pattern of lower highs and lower lows has developed, with occasional intraday spikes that test the $95–$97 region but fail to close decisively above the near-term resistance around $100. A break above the $100–$105 area on strong volume would be the first meaningful signal of momentum shift.

Key Buy/Sell Levels

Buy zones (conceptual, with current price context)

• Zone A (Primary near-term support): $92.0 – $93.0

  • Has this been touched? No. The recent daily lows sit around $93.6, leaving the exact band $92.0–$93.0 as a nearby, testable support.
  • Distance from current price: If price moves down to $92.0, that would be about $2.15 lower than the current price, approximately -2.28%.
  • Rationale: This zone aligns with historical basing and is consistent with the visible floor around the mid-$90s, plus the potential for a reaction rally should buyers step in near strong historical support.

• Zone B (Near-term reversion zone): $94.5 – $95.5

  • Has this been touched? Not yet (current price ~$94.15). The line between $94.5 and $95.5 is a touch above the current price and would require a small advance to reach.
  • Distance from current price: Lower boundary at $94.5 is +$0.35, about +0.37% from the current price.
  • Rationale: A shallow pullback and re-test near-term liquidity around the current area could offer a low-risk starter if a bullish intraday reversal occurs with a close above the $95–$96 zone.

• Zone C (Medium-term upside key level / breakout target): $100 – $105

  • Has this been touched? The price has not sustained a close above $100 in the immediate term and is below the 50-day MA.
  • Distance from current price: 100 is +$5.85 away, about +6.2%; top of the zone at 105 is +$10.85 away, about +11.5%.
  • Rationale: A reliable breakout above $100 with rising volume would shift the balance, with the next meaningful resistance around the MA50 near $105–$106 and the $110 area acting as a longer-term hurdle.

Trendline context (how levels relate to structure)

• The $92–$93 area aligns with prior basing activity and consistent with the lower boundary of the near-term trading range.
• The $100 line marks a clear overhead barrier in the current setup; the ability to clear this level with sustained closes would suggest a potential shift toward the $105–$110 region, especially if accompanied by volume expansion and RSI moving above 50.
• The $110 line represents a structural resistance from the higher-timeframe perspective, where previous swing highs have formed a notable selling zone.

Notes on buy zones

• For any entry, wait for a constructive price-action signal (e.g., a bullish reversal candlestick pattern, a daily close above the respective resistance line, or a bullish MACD/RSI setup) with improved volume confirmation before entering.

Technical Outlook & Summary

• Price action context

  • Near-term: Consolidation in the mid-$90s with a lingering downtrend bias. A break above $100 on strong volume would reframe the near-term setup toward a potential test of higher resistance.
  • Longer-term: The price remains well below the 50-day and 200-day moving averages, indicating ongoing downside pressure unless a sustained breakout occurs.

• Volume dynamics

  • Volumes have shown episodic spikes during declines and lighter activity during range-bound periods. A sustained rally would likely require a meaningful increase in volume on daily closes above $100 and above the 50-day MA.

• Technical signals

  • Momentum: MACD is negative but converging toward zero, suggesting a possible near-term shift if price action confirms a local bottom and RSI strengthens toward 50–60.
  • Momentum cautions: The RSI near 40 indicates limited upside without a clear price breakout and corresponding volume strength.

• Buy zones and rationale

  • Zone A (92.0–93.0): Strong near-term support, not yet touched; potential risk-managed entry if price tests this area with a bullish reaction.
  • Zone B (94.5–95.5): Proximal micro-reversion zone; proximity to current levels makes this a near-term watch area for a low-risk entry if a bullish intraday setup materializes.
  • Zone C (100–105): Break above this zone with volume would mark a meaningful shift in the short- to mid-term trajectory, aligning with the first major test of the MA50 and a potential leg toward higher levels.

• Final take

  • The structure currently favors a cautious stance: a below-average-position bias remains until NFLX proves a sustainable move above key resistance with corroborating volume. The identified trendlines (support at ~92, resistance at ~100, major resistance at ~110) provide clear reference points for potential entry and risk management.

If you’d like, I can refine the buy-zone criteria with more granular pattern rules (e.g., bullish engulfing, pin bars, or MACD/RSI cross confirmations) and provide a step-by-step trade setup with stop-loss and target guidance.