Stock of the day: Netflix

By Tomasz Wisniewski|

Published: September 28 2023, 07:56 GMT+0

Stock of the day: Netflix

As we delve into today’s topic of discussion, a particular focus lies on the entertainment giant, Netflix. Throughout September, this streaming behemoth has been on a downward trajectory, mirroring the trend seen with many indices. But, with this descent comes an interesting juncture that cannot be ignored.

In the recent price movement, Netflix has manifested a head and shoulders pattern, distinctly highlighted in yellow. This formation often signals a potential trend reversal, and in this case, the bearish implications seem to be coming true. The pattern’s neckline, illustrated in a bold blue hue, has already been compromised. To add to this bearish narrative, the price has slipped below the uptrend line, sketched in black.

However, all is not lost for the optimistic investors. There remains one final bastion of hope: the horizontal support level situated around the $377 mark, depicted in a more subtle light blue shade. This crucial price zone is currently under siege, and its outcome can dictate the stock’s future direction.

A breach below this support level would solidify the bearish sentiment and, without a doubt, broadcast a strong sell signal for traders. It would serve as the final nail in the coffin, confirming that Netflix’s bearish phase is in full throttle. Conversely, should the stock manage a resilient bounce from this pivotal area and reclaim its position above the previously broken neckline and uptrend line, it might just herald a bullish revival, beckoning investors to buy.



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