Peter Smith
⬤ Netflix is going through a major shift in its long-term technical setup after months of steady gains. The stock has moved out of Weinstein Stage 2—the phase known for sustained uptrends—and entered Stage 3. The weekly chart shows how NFLX previously maintained strong upward momentum while staying above its rising 30-week moving average.
⬤ During the Stage 2 phase, the chart shows multiple entry points that captured gains between 24% and over 40% during different rallies. Price kept making higher highs and higher lows, with pullbacks staying shallow and the moving average providing reliable support throughout the advance.
⬤ Recent action tells a different story. Netflix has rolled over from its highs and dropped below the 30-week moving average—a classic sign of entering Stage 3. Price has declined toward the mid-$80 range, with volume data highlighting previous trading activity at these levels. The stock hasn't bounced back to reclaim that moving average support, suggesting the uptrend momentum has faded.
⬤ This transition matters because Weinstein stage shifts often signal broader changes in how a stock behaves. Stage 3 typically means consolidation or distribution after a long run-up, which changes what traders should expect next. How Netflix handles this phase—whether it reclaims trend support or continues lower—could shape sentiment toward the stock and offer clues about momentum across large-cap tech and media stocks.
Peter Smith
