NFLX had a bearish engulfing candle on Dec 7. Since then, we have seen a bounce attempt with rejection from the daily 12 EMA. If NFLX cannot break out of the current descending wedge, we will look for a potential retrace to the 0.618 fib level. The nearest daily support levels are 260.61 and 250. The next resistance levels are 284.21 and 298.72. We maintain a bearish sentiment on NFLX until the break of 298.72. Zooming out on the daily timeframe, we see a head and shoulder pattern with price projection in the low 200-dollar range. If the 250-dollar support level is broken, we look for a rapid drop towards the low-200-dollar range, daily gap fill, and test of weekly 200 SMA currently at 197.
NFLX
NFLX