NFLX technicals are bearish; trend broken, price below EMAs, high volume supports downside.

Tell us about the Netflix chart, which has been painful for investors over the past year. Yes, absolutely, it has decreased by about 42% to 43% over the past year.

Looking at our graph , we can see Netflix in the purple line compared to the telecommunications sector, XLC fund, down 6.2%. In fact, Netflix, Google (Alphabet), and Meta are the main components of this sector as well.

Looking at Netflix more specifically, we see that we have seen an upward trend starting from our 52- week low of 65.08.

This trend has been broken. We now have a channel shape sloping downwards between our two white lines. After reaching our peak at the red line near 84, and on our way down from there , we recorded a relatively high at 81 and a price gap at around 70.

Meanwhile, our first green line represents our relative lows established after the downward gap at 70, and then the second green line at 65.08, which is our lowest level in 52 weeks.

Next, we can see that our 5-day exponential moving average in dark blue is our nearest moving average and it comes in at 71.13. We are trading below that level.

Our trend line is aligned with our 21-day exponential moving average in turquoise, which represents a month of trading at approximately 75. Therefore, that may be another area worth monitoring, given the overlap between these two things.

The Relative Strength Index (RSI), our measure of momentum, is trending downwards below the 50 midline, but it remains above the 30 threshold that would represent a move towards the oversold zone .

That would be an additional bearish signal to be wary of, especially if we start to excessively exceed our recent lows near 70 . This could indicate an acceleration of the downward trend and further pressure towards those 52- week lows.

The following is a study of our trading volume profile . This illustrates where our heavy trading activity lies. You can also see a large surge in trading volume in our lower study that aligns with our recent downward gap here.

Heavy trading volume in large moves often indicates strong conviction among traders here. Therefore, it lends more credibility to this downward movement.

Our trading volume profile shows a price node between 67 and approximately 70. So, this means more intense trading activity at these lower levels. We also had a range of approximately 72 to 78, with two larger peaks within that range here.

Therefore, these will be areas that need to be monitored for the possibility of upward converging activity.

They are still having difficulty regaining some of that cohesion here. Things seemed to be heading upwards after the earnings announcement and after this merger had taken root away from Netflix, but now we're almost back to our 52- week lows at this point, Alex.