Asset Watch
Tuesday, May 23, 2023
Outside of 2019 and 2022, Netflix’s 100-week moving average has largely acted as support. And with the critical level now resistance, the stock retreated when it approached the milestone last week.
The 100-week MA is also near the September and October 2018 highs, the May and July 2019 highs, the February and March 2020 highs, and the January 2023 high. As a result, Netflix needs to overcome these technical hurdles to continue its ascent.
The January 2023 high potentially created a double top, so you should be mindful of a possible reversal. When the ominous pattern formed in August and December 2015, Netflix declined substantially before finding support at the 100-week MA.
Are the technicals too troublesome, or will Netflix remain in a bull market?