There are some decent possibilities that the high of this rally has been seen though that has not yet been established on the charts.
NFLX generated a reversal day last Thursday having made a new 16-month high at 188.88 and then closing in the red. The reversal was confirmed with 2 subsequent red closes.
The stock yesterday went above Monday's high and also closed in the red suggesting that yesterday might end up being a retest of the 188.88 high. A successful retest of the high is always needed before technical selling appears, as such, yesterday's rally was expected and needed.
If the stock goes above yesterday's high at 183.56 it will mean the retest of the highs is not over. By the same token, if the stock goes below yesterday's low at 175,71 it will mean the retest was successful and further downside will likely be seen.
There is a minor support level at 174.80 that would need to be broken to stimulate new selling. Below 174.80 there is no support built until the 161.00/163.00 level is reached and therefore a drop of over $10 would likely be seen if 174.80 is broken.
The weekly chart is still in a strong uptrend but is having an inside week right now (lower high and higher lows than last week) and that says nothing. By the same token, the weekly chart is now in a strong breakout and in an uptrend so the probabilities continue favor the upside. By the same token, the stock has appreciated over 80% in value in just a couple of weeks and is due for a correction and a probable retest of the weekly close breakout at 126.43.
Based on the daily chart, there is a good possibility that the stock is in the process of building a top, albeit a possible temporary one. The next couple of days should determine that.
Keep an eye on the indexes as they are at major resistance levels with the all-time high in the DOW at 14198, strong resistance in the SPX between 1523 and 1530, and strong resistance in the NAZ at 3205 (on a weekly closing basis) and the top of a clearly defined channel at 3250.
NFLX is likely to now move on whatever the indexes do and no longer on its own, at least not at this price.
Keep in mind that in 10 out of the last 12 years there has been a strong seasonal correction in the indexes that usually starts sometime in February and goes through the end of March, as such the probabilities do favor a correction starting soon.
From a purely psychological basis, NFLX should visit the $150 level as that is a psychological area. On a purely technical basis, at some point the stock should visit the 126.43 area to retest the breakout point.