Shares of Netflix (NFLX) - Get Report have settled in near a key near-term support area this week. On Monday the stock dipped to within 25 cents of its December lows before mounting a slight rally. Yesterday the stock added another 1.65% of upside, but it remains very close to support. Before the Santa Claus rally officially kicks in, Netflix investors should focus on the $116-to-$114 area for low-risk entry opportunities.

Earlier this month, Netflix made an attempt at new 52-week highs but lacked the robust buying interest to drive shares significantly past the August peak. The stock consolidated a bit before beginning a new pullback phase. At midday last Monday, Netflix was working on its fourth straight decline before bottoming near key support. This week the stock has drifted back down to this important zone and once again has managed to rebound. The support zone that has held the December lows up to this point has managed to attract investors attention. Until proven otherwise, Netflix bulls should continue to focus on this area.

Over the next few sessions, Netflix bulls should consider the stock a buy on a dip below $116. The $115.70 area includes the stock's October and initial November highs. This is the upper band of the zone. The lower band is marked by Netflix's current December low set back on Dec. 14. Just above this level is the stock's 50-day moving average. On the downside, a close below $112 would do considerable damage to the short-term basing structure and could open the doors to a deep selloff.

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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.