Just a heads-up: this is me writing this, not AI summarizing my information—so hopefully it connects with you.

We have been watching Netflix for a while now, especially with all the news surrounding the potential sale and purchase of the company.

The good news is that price has continued to hit the liquidity points marked on my chart. As a side note, these liquidity zones—or LQZs—are even more important because they were identified on the higher time frames. Compared with lower-time-frame zones, these areas tend to carry more significance when price returns to them.

Netflix is now entering what I consider a prime reversal zone.

The reason I view this as a strong area is simple: the market cannot go down forever. The company is not failing. Netflix continues to raise prices, and the business appears to be under solid leadership. Unless people suddenly decide Netflix no longer serves a purpose and cancel their memberships all at once, I believe this company will continue to grow over the long term.

So, what exactly is a liquidity point?

These are areas in the market where price previously surged. This often suggests that the price was attractive enough for large investment firms to pour hundreds of millions of dollars into the stock at that time.

My logic is simple: if it was a good price then, it may be a good price now.

People are people, and human behavior does not vary much when it comes to the patterns behind our decisions. More than likely, the selling pressure is approaching an end, and buyers may be getting ready to step back in.

So, do I think this is a good time to buy?

Unfortunately, I cannot tell you that—but I can tell you that Netflix is a stock worth keeping a close eye on over the next couple of months.

HAPPY TRADING, MY FRIENDS!