Netflix (NFLX) has been one of the hottest large-cap tech stocks of 2018.
As of yesterday, Netflix stock is up over 60 percent year-to-date… and this includes February’s market swoon!
This mo-mo darling is nearing a crossroads, though.
Early last week, NFLX tested a confluence of resistance that included the topside of its bullish rising channel and its 261% Fibonacci extension level (both at point 2). Â That’s formidable resistance! Â As expected, the stock reversed lower and has pulled back from there.
What happens next will be important. A rally that breaks out above resistance would keep Netflix stock in a bullish near-term stance. However, if NFLX continues to pullback and breaks below its rising trend line (point 3), that would set the stage for a deeper decline. Should this occur, NFLX may retest the January highs, or even its lower channel support further below.
Stay tuned!
$NFLX Netflix ‘Weekly’ Stock Chart
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