Netflix: A Correction Within a Strong UptrendNetflix: A Correction Within a Strong Uptrend
NASDAQ:NFLX has gone through a lot over the past few years, from huge growth to deep corrections, and lately we’ve seen a (healthy?) 20% pullback that brought the price right to the lower boundary of its long-term ascending channel.
At first glance, the break below the $1,150 level looked worrying, and it certainly brought some pessimism to the market . But the area between $1,070 and $1,100 is still a very strong support zone that shouldn’t be ignored. As long as this zone holds, the broader bullish structure remains intact. Let me share a zoom:
If the price drops below $1,050, that would be a sign of trouble, it would mean we’ve entered the previous correction zone and broken both key support and the lower line of the channel. That’s where the trade SL its logic, and cutting losses quickly becomes essential l. The downside risk from current levels is roughly 6%, which is acceptable in exchange for the potential upside.
On the bright side, the market remains bullish overall . Netflix keeps reinventing itself, improving margins, and showing solid fundamentals. Technically speaking, this correction looks textbook, the current pullback mirrors the size of the previous one (White arrows), and Fibonacci’s 61.8% retracement (blue arrow) level has once again acted as a key pivot point. This kind of pattern is a classic correction, not an impulse.
If the stock confirms a rebound from the channel support, the potential is significant: around +20% if price revisits previous highs, and up to +35% if Netflix breaks into new territory.
In short:
✅ Strong long-term uptrend still intact
✅ Correction looks healthy and technically clean
⚠️ Support at $1,070–$1,100 must hold
📈 Upside potential 20–35% vs. ~6% downside risk
Sometimes, opportunities like this appear only a few times in a cycle, Netflix might be one of them right now.
