Stock of the day: Netflix

Netflix has certainly been in the spotlight for traders, presenting an intriguing technical landscape. After an impressive performance in November, the stock encountered a formidable resistance matching its mid-July peak. This resistance level has proven to be a turning point, marking the onset of a downward trajectory.

The recent trading sessions have underscored the seriousness of this bearish shift. Notably, the occurrence of two consecutive bearish candles, accentuated by a bearish gap, signals a strong sentiment for a correction. This suggests a heightened focus on downward movements in the short term.

From a technical perspective, the immediate target for this correction appears to be the ascending black trend line. The likelihood of the price reaching this level is high, given the current market dynamics. Further down, the yellow zone emerges as another potential target. This area has frequently acted as a pivot point, oscillating between support and resistance throughout 2023.

At present, the short-term outlook for Netflix remains bearish. A shift to a positive sentiment hinges on the stock achieving new long-term highs. However, given the current market conditions, the probability of such a scenario unfolding seems limited for now.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-netflix-8