Netflix

Current Price: 424.99

Netflix has consolidated in a price range between 265 and 385 (refer chart 1). A breakout above this pattern with an increase in volumes is bullish for the stock. In the past, Netflix has consolidated in similar patterns on two occasions between 2014 and 2016 (refer chart 2). On both occasions, the breakout above the pattern has resulted in an increase in prices. If the stock maintains weekly closes above 385, prices could rally towards 500. The bearish alternative is for prices to fall back into the pattern (trading below 385).