Netflix reached its all-time high at $701 in November 2021. Since then, the price has plummeted dramatically over the last 5-6 months. This huge slump has taken the price to $218, making it the worst fall ever. This fall is about a 70% loss from the all-time high of $701. As a result of the price fall, Netflix investors are yet to make a profit this year.
On the daily chart, a gap down occurred on January 21, 2022, from $507 to $399 and the price is yet to retrace. In the process of the price falling during this gap down, it hit a target we forecasted in an article we published in August 2021. Another gap down occurred on the daily chart on April 20, 2022, from $333 to $246. As of April 21, 2022, the price closed at $218 as a consequence of this last gap down, thereby making $218 the most recent support. Price last hit this point in January 2018.
In the last few days, $NFLX reported a loss of over 200,000 subscribers in Q1 2022. There are speculations that Netflix will lose over 2million customers in Q2 2022. Despite speculations, we foresee a price rally and we expect both gap-downs to be filled. This price rally should take the price to $387.
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