Since Mid 2017, Netflix has been on a continuous uptrend that has sustained for over 4 years, today. However, the trend reached an accumulation phase starting April 2020 and stayed in it and wasn’t able to break above the resistance level of 580.69 until Early September 2021. Due to Squid Game’s recent release on September 17, Netflix has reached an unmatched, all-time high of $690.31 on October 29, 2021. But will the uptrend hold, or is it time for a reversal?
Using Fibonacci analysis, we found very close confluence levels that have previously acted as resistance levels, but reversed into potential support levels that were respected once right after the breakout. Taking these confluence levels into account, we can use them to project price targets upwards, since we’re in an uptrend. We have found two potential price targets, one at 699.8 and the other at 730.6. We can see that as price is getting very close to our primary price target, volume is decreasing, which points to the fact that the trend is probably running out of momentum.
Also, if we look price oscillator at the bottom of the chart, we can see that almost every time, the oscillator reaches the overbought levels or goes above it, price reaches a peak then reverses. Since the oscillator now is getting very close to the overbought level, it is most likely that price will increase a bit more then reverse and this will probably indicate the beginning of a new downtrend. The next couple of weeks will show whether Netflix will continue its significant uptrend or will it reverse into a new downtrend.