Netflix stock price rises following a bounce off a 9-month low.
Netflix’s stock price registered a fresh nine-month low near 255.00 on Tuesday after the 50- and 200-simple moving averages posted a death cross in the aftermath of significant losses in the stock.
Technically, the stock is looking bearish in the short term. Attesting to this, the RSI has been declining overall towards the oversold zone, while the MACD oscillator dropped below the trigger line and is strengthening its downward momentum in the daily timeframe.
More declines could turn traders’ attention until the 235.00 support level, identified by the bottom on February 2018. Slightly below this barrier, the 225.00 level could be the next level to focus on.
An alternative scenario is a jump above the 270.00 level, creating an upside rally towards the 332.00 resistance, which stands near the death cross, after surpassing the 300.00 level. A failure to hold below this level, would shift the medium-term outlook to a more neutral-to-bullish one and challenge the 386.00 resistance, taken from the high on October 2.
In the medium term, the bearish outlook remains intact following the bounce off 422.26, with trading activity taking place well below the two moving average lines.
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