Netflix (NFLX) is seeing a 4H bull flag consolidation right at its ATH (all-time highs).
This comes right after Nvidia’s recent drop, which as we’ve covered is not bearish – but rather setting up for another leg up.
So, with Nvidia acting as another point of bullishness, we do have a case for a breakout on Netflix. Let’s break this down on the 4-hour timeframe on NFLX’s chart.
NFLX: Bull Flag on 4H and Double Bottom on Stochastic RSI
Even though Netflix has created several bearish reactions at this ATH resistance level, there are a few factors which support a bullish breakout to happen eventually.
The first, obviously, is the creation of a bull flag on the 4H timeframe. Secondly, this comes aligned with a 4-hour double bottom consolidation as well, which is usually a good sign for a stock price to rise.
Depending on if and when the breakout appears, the measured move target would be placed at approximately $820.00 to $830.00 – roughly marking a 1,227 pips move or 18%.
| Resistance Levels to Watch for a on NFLX • Bull flag upper trendline • ATH resistance zone: Approx. from $695.45 – $710.55 |
In Case of a Deeper Retracement: Watch These Levels
In the event a rejection to the downside does occur on NFLX, pay attention to whether the price falls out of the bull flag or breaks certain key levels below.
For now, the NFLX 4-hour chart has shown to be respecting its 20 EMA, which it has recently bounced off of. If this EMA breaks, the 50-EMA is quickly rising to align with the lower trendline of the bull flag, which is another bullish indication.
There are also various Fibonacci Retracement levels to watch as a potential support. The first being the 0.382 retracement at $664.21, which is highlighted in blue and aligns with a minor support level.
The second and most important Fib level to watch is the 0.618 retracement at $635.24, which aligns with the 4H-200 EMA and a major support zone.
| Support Levels on Watch on NFLX • 4H-20 EMA: Yellow Line in the chart • 4H-50 EMA: Green Line in the chart • 38.2% Fibonacci Retracement: $664.21 (Aligns with Support Level) • 61.8% Fibonacci Retracement: $635.24 (Aligns with 4H-200 EMA, Major Support Zone) |
Either way, it does seem more likely than not that Netflix is simply waiting to push the “play” button of the bull flag to eventually break its ATH.
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