Investors analyzing Netflix stock (NFLX) are weighing a day of strong gains against worrying signs from pre-market activity, creating a complex picture for the upcoming trading session on Monday. While the stock finished Friday’s session with a solid rally, after-hours data suggests that momentum may be reversing, urging traders to approach with caution.
Here’s a breakdown of the critical information every trader needs to know.
Friday’s Bullish Performance
On Friday, June 17th, Netflix Inc. demonstrated considerable strength. The stock closed at
13.20 (+1.09%) for the day. This positive performance is notable because the stock opened at its low point of $1,212.20 and steadily climbed throughout the day, closing near its intraday high of $1,226.25. This pattern typically signals strong buying pressure and bullish sentiment carrying into the close.
Key Friday Metrics:
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Close: 1,225.35 USD
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Day’s High: 1,226.25 USD
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Day’s Low: 1,212.20 USD
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Open: 1,212.20 USD
The Pre-Market Red Flag
Despite the strong finish, the most critical piece of data for Monday’s outlook is the pre-market trading. The screenshot shows pre-market activity a
6.26 (-0.51%).
This downturn after the market’s close indicates that sentiment has shifted negatively overnight or in early morning trading. This often points to a “gap down” opening, meaning the stock will likely begin trading on Monday at a lower price than its Friday close. The downward sloping line in the after-hours section of the chart visually confirms this negative pressure.
Technical Levels to Watch on Monday
For a trader, the decision to invest will hinge on how the stock behaves around key price levels.
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Immediate Support Zone: The most critical support level to watch is the area around $1,212.15 – $1,212.20. This marks both the previous day’s close and Friday’s low. If the stock falls to this level and bounces, it could signal that buyers are stepping in. However, a decisive break below this zone could trigger further selling.
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Initial Resistance: If the stock manages to reverse its pre-market losses, it will face its first major hurdle at Friday’s high of $1,226.25. Breaking past this level would be a strong bullish signal, suggesting the positive momentum from Friday is resuming.
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Wider Context: Traders should also note the high volatility indicated by the 52-week range, with a high of $1,262.81 and a low of $588.43. This shows the stock is capable of large price swings.
Verdict: Will the Market Go Up or Down?
Based on the conflicting signals, the market for Netflix stock is likely to open lower on Monday. The negative pre-market data is a more recent and powerful indicator than Friday’s closing strength.
Is it right to invest today (Monday)?
Investing at the market open on Monday appears risky. A prudent strategy would be to wait and observe the initial price action.
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Bearish Scenario: If the stock opens lower as predicted and breaks below the $1,212 support level, further downside is likely.
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Bullish Scenario: If the stock opens lower but finds strong support at or above the $1,212 level and begins to climb, it could present a buying opportunity for traders who are willing to take on some risk.
In conclusion, while Friday was a victory for the bulls, the pre-market sentiment is casting a significant shadow. Traders should prioritize risk management and wait for a clear confirmation of direction after the market opens before committing to a position.
