Netflix Inc's (NASDAQ: NFLX) stock performance has attracted significant attention, mainly due to its recent price fluctuations.
The stock experienced a considerable downturn between July and October 2023, but has shown resilience by bouncing back.
During this period, the stock experienced a decline of 28%, causing concern among investors and market analysts.
However, the stock found support at the weekly 50 simple moving average, specifically around $360.
This support level played a crucial role in preventing further declines and acted as a catalyst for the stock's subsequent upward trend.
Netflix has recovered well, as it is currently up 38%, but has also significantly rebounded from a deep slump experienced between November 2021 and May 2022, where it saw a 76% decline.
From its lowest point during that time, there has been an impressive 191% surge to the upside.
The stock has experienced a 61% gain this year, including a notable 16% increase for November.
This strong upward trend indicates a bullish momentum. Yet, there are challenges on the horizon.
A crucial resistance level lies at $478, which holds significance as it was the lowest point in May 2021 and served as a turning point for the stock in July
The upcoming days and weeks will be pivotal in determining whether the stock can surpass this resistance level.
The stock faces a tough hurdle if it surpasses $478. Further ahead, it will confront psychological resistance at the significant milestone of $500.
This milestone is highly valued by investors and can greatly impact the current momentum. However, if Netflix manages to overcome this hurdle, it could lead to a significant surge. The next important resistance level to watch is the 2022 high of $609.
After the closing bell on Friday, November 24, the stock closed at $479.56, trading up by 0.30%.