Netflix’s stock has been experiencing a very tough year, losing more than 60% of its value and generating a five-year low of 162.00. Nevertheless, the share price has staged a moderate rebound since May, with the recent golden cross between the 50- and 200-day simple moving averages (SMAs) endorsing a broader recovery.
The short-term oscillators are indicating that bullish forces are subsiding. Specifically, the RSI is pointing downwards slightly above its 50-neutral mark, while the MACD histogram has retreated below its red signal line but remains in the positive territory.
Should the buying interest intensify, the price could encounter initial resistance at the recent peak of 311.00. Crossing above the latter, the bulls could aim for the 329.00 crucial support that was violated after the disappointing Q1 earnings release. Even higher, the share might ascend towards the strong resistance of 395.00.
To the downside, bearish actions could send the price to test 250.50, which has acted as both resistance and support in the previous months. Sliding beneath that floor, the October low of 211.00 may come under examination. A break below the latter could then open the door for the five-year low of 162.00.
Overall, Netflix’s stock appears to be struggling for direction despite the recent golden cross. Therefore, a clear break above the 311.00 is needed for the continuation of the rebound.