If you followed us on Twitter or on Stocktwits last week, you are already aware of the following development in Netflix’s stock.
On Monday morning, we shared how NFLX was coiling into a ‘Bermuda Triangle’ – caught between its converging best respected moving average support and resistance lines. NFLX did that on both daily and weekly time frames.
On the daily, the 377-day SMA acted as the body resistance line and the 384-day SMA acted as the wick resistance line. Support was provided by the 145-day SMA (body) and the 152-day SMA (wick):
Zooming in:
On the weekly time frame, NFLX has been trading beautifully for the last 6 weeks along the 79-week SMA body resistance line, backed up by the 81-week SMA wick resistance line:
Monday’s trading day ended with NFLX closing 16 cents below the body resistance line:
Netflix’s stock started Tuesday by breaking nicely above the 377-day SMA – the body resistance line. It approached the wick resistance line:
The wick resistance line showed some muscle and NFLX retreated, however, it kicked the previous body resistance line out and got the 379-day SMA to replace the 377-day SMA:
Wednesday saw NFLX closing at the wick resistance line and Thursday is the day when NFLX broke up above the 384-day SMA wick resistance line:
Netflix’s stock ended the week above both the daily resistance lines it started the week respecting:
The weekly view provided the same dramatic episode: Here too, NFLX broke above both resistance lines it has been respecting for so long (since January 2022), including the beginning of that week:
How will NFLX trade from here during next week?
Only one way to know.