Netflix stock price loses momentum below “death cross”; medium-term sell-off in play.
Netflix stock price bounced off the 298.00 resistance level on December 3 and retains bearish extension in medium-term. Technically, the indicators are endorsing this view in the short term. Attesting to this, the MACD has been declining and is approaching the trigger line, while the %K line of the stochastic oscillator is turning marginally higher above the oversold zone.
More declines could turn traders’ attention towards the 253.00 support level again, identified by the recent lows. Slightly below this barrier, the 235.00 hurdle could be the next level to focus on, registered on February 9.
An alternative scenario is a jump towards the 298.00 region, creating an upside rally. Additionally, the price could open the way until the 332.00 resistance, which stands near the death cross of the 50- and 200-simple moving averages (SMAs) in the daily chart, after surpassing the 300.00 handle. A move above this, would shift the medium-term outlook to neutral-to-bullish one and may challenge the 386.00 resistance, taken from the high on October 2.
In the medium term, the bearish outlook remains intact following the pullback 422.26, with trading activity taking place well below the two moving average lines.
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