Netflix (NFLX) RSI Bearish Divergence Setting Up Major ReverNetflix, Inc.BATS:NFLXfredcast80📈 Summary: Netflix has rallied +44% in just 60 days, entering a steep, parabolic move. However, technical exhaustion signs are now flashing across multiple indicators — suggesting a potential near-term top may be forming. 🔍 Key Technical Observations: 1. Bearish RSI Divergence The RSI is making lower highs (~73) while price makes higher highs → classic bearish divergence. Similar divergences in December and February led to drops of –12% and –18%, respectively. 2. Parabolic Move + Rising Wedge Price has broken out of an orderly channel and is now moving parabolically, a pattern typically unsustainable. The current structure resembles a rising wedge, often a reversal formation. 3. Volume Weakness Volume has been declining throughout the recent push, signaling weak demand behind the rally. No climactic buying — this raises the risk of a sharp drop if momentum fades. 4. MACD Losing Momentum MACD histogram has flipped slightly negative. A potential bearish crossover is brewing. 🧭 Strategy Outlook 🚨 Aggressive traders could look for short opportunities below $1,240, where support may break. 🧠 Options traders might consider a bear call spread once a daily close confirms the wedge breakdown. 📌 Key Levels Support to watch: $1,240 (break = confirmation) Next support zone: $1,190–1,155 (EMA cluster) Critical RSI trigger: break below 65 confirms bearish divergence playing out 🧩 Final Thoughts The RSI divergence, parabolic structure, and volume behavior all align for a potential pullback. While the trend is still technically intact, risk-reward favors preparing for a reversal, especially with prior divergences leading to significant downside.