Welcome to our comprehensive weekly analysis of Netflix (NASDAQ:NFLX) for Week 3 of January 2026. This blog post delivers a deep dive into NFLX’s price action, technical and fundamental drivers, and actionable scenarios for traders and investors.
Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Please conduct your own research before making any trading decisions.

📈 NFLX Chart Overview (Week 3 January 2026)

• Trend: Bearish – Persistent downtrend with lower lows and resistance at multiple levels.

• Support: $85.50 (major), $80.00 (minor)

• Resistance: $90.75 (minor), $96.00 (major)

• Momentum: RSI at 26.98 (oversold) – Potential for short-term reversal, but trend remains bearish.

• Volume: Increasing on downturns, indicating strong selling pressure.

• Pattern: Descending trendline, series of lower highs/lows.

📰 Latest News & Catalysts (Past 7 Days)

🔍 Technical Analysis

• Trend: The chart displays a clear downtrend, with price consistently below key moving averages. NFLX has formed a descending trendline, and both daily and intraday timeframes confirm this bearish bias.

• Support & Resistance:

  • Support: $85.50 (major, previous low), $80.00 (minor)

  • Resistance: $90.75 (minor, recent resistance), $96.00 (major, previous consolidation)

• Momentum: The RSI at 26.98 signals an oversold condition, which could lead to a short-term bounce. However, the prevailing trend is bearish, and any rallies may face strong selling pressure.

• Volume: Volume has increased on down moves, confirming that sellers remain in control. This is a classic sign of distribution in a bearish phase.

• Pattern: The price structure is defined by lower highs and lower lows, reinforcing the downtrend. No reversal patterns are evident yet.

• MACD: The MACD remains below the signal line, supporting the bearish momentum.

💡 Fundamental & News Impact

• Subscriber Growth: Netflix reached 315 million subscribers, a notable milestone. However, the market’s focus is shifting toward advertising revenue and content diversification.

• Acquisition Rumors: Ongoing speculation about a potential Warner Bros. Discovery acquisition has increased volatility and raised concerns about debt and strategic focus.

• Content Pipeline: The 2026 slate is robust, with major releases expected to drive engagement and ad revenue. Live events and IP diversification (e.g., NFL games, Squid Game) are key growth drivers.

• Analyst Sentiment: Consensus remains moderately bullish for the long term, with average price targets around $126–$139, but short-term risks persist due to acquisition uncertainty and recent underperformance.

• Valuation: NFLX trades at a forward P/S of 7.83x, above the industry average, suggesting some premium is priced in for its growth prospects.

📊 Actionable Scenarios for Week 3 January 2026

🛡️ Risk Management & Strategy

• Risk 0.5–1% of capital per trade.

• Use ATR (Average True Range) to set stop-loss levels.

• Monitor news flow, especially regarding acquisition developments and earnings previews.

• Align trades with the dominant trend; avoid countertrend positions unless clear reversal signals emerge.

📅 Weekly Outlook Summary

Netflix (NFLX) faces a challenging week with a dominant bearish technical setup, heightened by acquisition rumors and sector volatility. While oversold conditions could prompt short-lived rallies, the prevailing trend and volume suggest further downside risk. Traders should watch for a break below $85.50 for continuation, or a close above $96.00 for potential reversal. Stay alert to earnings updates and macro headlines, as these could shift sentiment rapidly.

🔔 Stay tuned for next week’s analysis and always trade with discipline!