Netflix Attempts Historic BreakoutNetflix recovered quickly from its August lows, and now some traders may see potential for a rally to new highs.
The first pattern on today’s chart is the July 17 peak of $678.97. Notice how the streaming-video stock crossed and held that level last week. Has old resistance become new support?
Second, the July 17 candle followed a mixed quarterly report. The stock tried to rally that morning before sellers managed to drive it lower. Getting back above that day may suggest that investors are focused on positive aspects of the report.
Third, MACD was falling at the time, which may additionally explain why the bulls failed. However, the oscillator is now rising. Prices are also above their 8-day exponential moving average. Those signals may reflect bullishness in the shorter term.
Fourth, NFLX is near its previous highs from 2021. As a result, further upside from here may draw longer-term trend followers and talk of a new bull run.
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