Netflix's Tense Climb Towards The $700 Barrier And A Stunning 44% Year To Date Growth Could Signal A Historic Breakthrough

• Netflix is approaching a major psychological resistance level at $700, a point that has previously influenced investor sentiment and led to significant sell-offs.
• The stock has seen an impressive historical performance, increasing by over 8000% from 2011 to 2021.

Psychological resistance levels often serve as strong barriers that can influence investor sentiment. Netflix Inc. NFLX is now on the verge of a major breakthrough, challenging a significant resistance point at $700.

This isn't just a number but a psychological hurdle that has significantly impacted the stock's path. Historically, Netflix's stock journey has been remarkable, growing over 8000% between 2011 and 2021.

However, the $700 level has been a critical point. Previously, hitting this price triggered a major sell-off, causing a 76% drop that bottomed out in May 2022.

This sharp decline highlights the impact of this resistance level and the caution investors feel when reaching this point. Currently, Netflix's stock has hovered around the $700 mark for almost two months, showing a tense standoff between bullish hopes and bearish caution.

The stock's first attempt to break through this level was on July 5, when it jumped 28% from around $550 but hit resistance at $700. This led to a 15% drop, with prices falling just below $600 before rallying again.

The ongoing struggle to surpass the $700 mark has led to a period of consolidation, with investors watching closely for signs of a breakout.

The stock's second attempt to exceed this threshold shows a more sustained effort, reflecting the growing determination among buyers to push beyond previous highs.

The stock's recent performance highlights anticipation of a breakout. In August, Netflix's stock price rose by 11%, contributing to a 44% increase for the year.

This positive momentum might be the catalyst needed for the stock to finally break past the $700 resistance level. Investors and analysts are attentively observing Netflix's stock developments.

A successful move above $700 could trigger a strong upward trend, benefiting those who endured uncertainty. On the other hand, failing to break through could result in a repetition of past patterns, where significant declines followed attempts to reach this level.

If buyers can gather enough momentum to propel the stock beyond $700, it may lead to a strong long-term upward trend.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.