Netflix (NASDAQ:NFLX) has been a major winner in 2017, but it failed to break out to new highs recently. The stock topped out on July 21, 2017 at $191.50 a share. The price challenged that July top on September 2 but was rejected and has pulled back over the past few weeks. Currently, the stock is trading at $178.89. The daily chart pattern is also very weak on a bear flag formation.
This chart setup tells us that the stock could trade down to the $166.50 level on the daily before finding major support. Remember, Netflix reports earning on October 16, which is always a difficult period to predict how the stock will perform.
