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Netflix (NFLX) - Get Free Report  is retesting a key technical resistance level, and a break above it could power a 16% move higher, taking shares back up to their April highs.

The $95 level supplied channel support at the end of last year, but early this year it was broken to the downside, and the stock continued lower. It was able to hold at $80 and form a bullish cup and handle pattern under the former support level now acting as rim line resistance.

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In March, the rim line was taken out and the stock rallied 17% to its April high, which was just above the pattern price projection arrived at by measuring the depth of the cup portion of the formation and adding it to the neckline. The stock quickly reversed after achieving its price objective and gapped lower, wiping out its recent gain and moving back below the rim line. This time it was able to hold at $87.50, which marked the handle low, and then rally back to return to and retest the key $95 level.

The relative strength index has crossed above its 21-day average and centerline, and moving average convergence/divergence made a bullish crossover. These are positive price and short-term trend indications. On the money flow side, the money flow index, a volume-weighted relative strength measure, is tracking higher and above its centerline, and Chaikin money flow, a derivative of the accumulation/distribution line, is moving into positive territory. These are signs that the stock is seeing renewed buying interest.

Netflix is a long candidate after an upper candle close above $95 using a trailing percentage stop.

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