Is Netflix facing resistance? Where could we see a pullback?
Netflix (NFLX) has been rising without brakes, hitting all-time highs with impressive consistency. Since the lows of 'Liberation Day', the stock price has already risen over 38%, demonstrating the strength of its momentum. However, every sustained rise eventually takes a pause, and the big question is: where could that first serious pullback occur?
Founded in 1997 as a DVD rental service by mail, Netflix has become a global streaming giant, offering on-demand content in more than 190 countries. A pioneer in the binge-watch model, it quickly transitioned from mail rentals to digital streaming in the late 2000s. Over time, Netflix expanded into original content production, creating series, movies, and documentaries under its own brand. Today, its extensive catalog and data-driven recommendation engine keep it as a benchmark in an increasingly competitive streaming market.
When a stock operates in unknown territory, resistance levels are not as clear. In the case of Netflix, the first immediate technical hurdle is an upward trendline that starts from the peak in July 2023 and crosses the record high from last year. This line comes into play as the price continues to rise, creating a natural zone where supply could temporarily exceed demand.
Beyond that, a second trendline offers another potential turning point. By connecting the two candles of previous all-time highs, we project a new resistance that roughly coincides with the $1,200 zone. If the stock reaches that level, the confluence of previous highs and the upward trajectory suggests a logical area for a short-term pullback before a new thrust.
For now, Netflix's unstoppable rise shows no signs of exhaustion, but these two trendlines could indicate the areas where the ascent takes a breather before the next push towards even higher levels.
