Stock of the day: Netflix

The chart of Netflix presents us with a very classical technical setup — a symmetric triangle pattern, marked with red lines. This formation is a textbook example of a market in consolidation: volatility is shrinking, daily swings are narrowing, and price is being squeezed closer and closer to the apex of the triangle.

Such a setup is important because it typically precedes a breakout. Traders know that once price finally escapes the pattern, momentum can accelerate sharply in the direction of the move. For Netflix, a breakout above the upper red line would serve as a strong bullish signal, inviting buyers to push toward new highs and confirming a continuation of the broader uptrend.

On the other hand, we cannot rule out the bearish alternative. If Netflix closes a day below the lower boundary of the triangle, that would invalidate the consolidation as a base for growth and instead turn it into a bearish continuation pattern. In that case, sentiment would flip, and sellers would gain the upper hand. Until the breakout occurs, patience is key — but the setup is promising, and Netflix is approaching a decisive moment.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-netflix-13