Netflix Share Price Predictions: Will the Selling Continue?

The bearish Netflix stock price forecast re-emerged on the scene after the bears confirmed the bullhorn-top pattern on the daily chart. A break of the pattern’s lower boundary on Wednesday was followed by a return attempt on Thursday, which was rejected at the broken boundary. Friday’s 1.08% decline set the tone for a move south in line with expectations from the top of the expanding triangle/megaphone.

Thirty-six institutional analysts maintain a buy recommendation on the stock, with a 12-month price target of $502.50. This offers upside potential of 40.4% from current price levels. The recommendation remains unchanged since March when it first appeared. However, it looks like things could get worse before they get better for the stock. Netflix has now lost all gains made since March 17. Losses could widen if the bears can break down a key support level at 354.13.

Netflix Stock Price Predictions

The completion of the Megaphone top pattern on the daily chart indicates another slide. A break of support at 366.87 has confirmed this outlook and indicates a push towards 340.48 as the measured move continues to complete. This move would force the bears to break down support at 354.13 (Feb 24th and March 17th lows). Further decline below the completion point of the measured move moves price activity towards 331.16 (March 14th low) or 321.59.

On the other hand, a bounce off the current support at 366.87 sends the stock towards 374.57. Bulls need to breach this resistance to make 395.29 a new target. This target is the limiting barrier between the bulls and a new rally that invalidates the pattern. If indeed the bulls clear the resistance at 395.29, 412.51 becomes available, having served as the site for the previous highs on February 4 and February 9. Other targets to the north include 431.43 and 445.06, but they are currently out of range for the bulls.

Netflix: daily chart

Follow Eno on Twitter.

Karen J. Nelson