Eseandre Mordi
⬤ Netflix shares hit a critical technical level as the monthly chart flashed a warning signal traders have seen twice before. The latest candle formed in November 2025 around $110, matching a pattern that's preceded major trend reversals in both 2019 and 2022. Each time this setup appeared, it marked the peak of extended rallies before sharp declines or long consolidations followed.
⬤ The pattern first emerged in August 2019 when Netflix was riding high after a sustained climb. That yellow monthly candle led into a weaker phase that caught many bulls off guard. The signal returned in January 2022, right before one of NFLX's most brutal selloffs. Now the same formation has appeared again at $110, raising questions about whether the stock's momentum is running out of steam.
The yellow monthly candle formed in November 2025 when NFLX was trading around the $110 level—the same technical signal that appeared before major downturns in 2019 and 2022.
⬤ What makes this pattern significant is its timing. All three instances showed up after Netflix had already traveled far from support levels, often near technical extremes. The chart suggests that when price gets stretched and this specific candle prints, the risk of reversal jumps considerably. It's not about predicting crashes—it's about recognizing when the odds shift against continuation.
⬤ For the broader market, Netflix's technical behavior matters beyond just one stock. As a mega-cap growth name, NFLX often sets the tone for tech sentiment. When monthly patterns this consistent start appearing, they tend to influence how traders view risk across the sector. The fact that this signal has now repeated three times over six years gives it weight that shorter-term setups simply don't carry.
⬤ The takeaway isn't that Netflix must collapse—it's that the chart is showing the same warning it's shown before at major turning points. Whether that plays out as a sharp reversal or extended chop remains to be seen, but ignoring a pattern with this track record hasn't worked out well in the past.
Eseandre Mordi
