Shares of Netflix, Inc. (NASDAQ:NFLX) are ripping higher Thursday morning. Some analysts attribute this to the streaming service's entry into video games, while others tout its domination in the 2021 Emmy nominations.
If shares reach levels around $565, there’s a good chance they crash into a wall of resistance. This could keep a top on them.
Why It's Important: Resistance is a large group of sellers offering their shares at the same price. At resistance levels, there’s more supply than demand. That’s why rallies end when they reach them.
In February and April, Netflix stock reached the $565 level and when it did, the sellers came out in force. They put a top on the price and a downtrend followed.
Sometimes a resistance level may retain its importance for a long time. If that’s the case here, the Netflix rally may be over soon.
See Also: Netflix Expands Animated Film Licensing Deal With Comcast's Universal
