Is Netflix (NFLX) Back From The Dead? Recent Momentum Raises Eyebrows

Netflix, Inc (NFLX) the pioneer in streaming services, has maintained its dominant position in the industry with a diverse range of content and global reach. The company’s investment in original programming has enabled it to withstand competition from new and existing services. Netflix offers movies, television shows, and documentaries across various genres and languages, accessible on internet-connected devices worldwide. Founded in 1997, the company started as a DVD-rental provider and expanded to streaming media and video on demand. It has since ventured into original productions, accounting for half of its library in the US by 2022. NFLX is listed on NASDAQ and is a component of Nasdaq 100 and S&P 500 under Telecommunication.

This NFLX chart is in log scale for clearer illustrators.

NFLX hit an all time high around $700 on 17 Nov 2021. However, the price started to retrace and on 21 Jan 2022, the price gap down by more than 20% with earning results as catalyst. This came with a spike in volume, suggesting the presence of supply. The trading range which started in April 2020 became a Wyckoff distribution phase. The price then found support around $352 and tried to stay above it but the inability of the price to rally up spelled more weakness ahead.