Netflix stock’s bullish bias improves, reeling in the 200-day MA.
Netflix stock is overtaking the 308.30 swing highs level, which is a pullback level where sellers previously took full control. The push up backs the rebound off the nine-month low of 252.13, reaffirming the bullish bias. Further supporting this view is the upwards slopes in the 20- and 40-day simple moving averages (SMAs) and the bullish crossover between the two.
The short-term oscillators reflect strengthening positive momentum. The MACD, in the positive zone, is rising above its red trigger line, while the RSI has claimed the 70 level. The ADX also confirms that there’s a strong positive trend in place.
To the upside, initial resistance could come from the 318.30 level, which is the 50.0% Fibonacci retracement of the down leg from 384.47 to 252.13. Climbing higher, buyers could encounter downside pressure at the 200-day SMA and 61.8% Fibo at 330.40 and 333.85 respectively, before further attempting to stretch towards the 76.4% Fibo of 353.25 and resistance of 360.77.
Alternatively, if sellers retake control and steer below the 302.50 area – where the 38.2% Fibo and 100-day SMA are located – the 20-day SMA at 291.70 may stall the decline towards the 283.40 support, which is the 23.6% Fibo and where the 40-day SMA also lies. Moving lower, the swing low of 265.70 could unfold.
Overall, the short-term bias is improving its positive picture and a break above 333.85 would reinforce this view. However, a drop below 265.70 could increase the odds for the bigger negative picture to resume.
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