Is Netflix Headed for a New Record High?

Netflix Inc (NASDAQ: NFLX) has been in in a rising mode since August 17^th, while on the 23^rd, it managed to break above the downside resistance line drawn from the high of January 20^th. What’s more, on Monday, the stock emerged above the high of April 20^th, at 563.00 a move that may have confirmed that the outlook has turned from neutral to positive.

In our view, the break above 563.00 may have opened the path towards the stocks record high of 593.24, hit on January 20^th. If investors are not willing to stop there this time around, then a break higher would take the stock into the uncharted territory, and with no prior highs and inside swing lows to mark the next potential resistance zone, we would consider a one the round figure of 650.00.

Taking a look at our daily oscillators, we see that the RSI lies above 70 and points up, while the MACD runs above both its zero and trigger lines, pointing north as well. Both indicators detect strong upside momentum and corroborate the view for further advances and potentially a new record in this stock.

On the downside, we would like to see a dip below 480.00 before we start examining the bearish case. This may confirm a break below the upside support line taken from the low of September 18^th, last year, and may allow declines towards 460.00, marked by that low, or the 432.00 zone, defined as a support by the low of June 29^th, 2020. If investors are not willing to buy at that price either, then we could see the slide extending towards the low of May 27^th, 2020, at 397.00.

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