NEW YORK (TheStreet) -- Netflix (NFLX) - Get Report has been trading in a very tight range this week, a sharp contrast to the action of Aug. 21 to Sept. 8. Netflix has been consolidating since a sharp downside reversal on Sept. 8. Soon after, volume began to ease as the stock settled inside a key support zone.

For investors, the narrow-range, low-volume action of late has left the stock in a low-risk buy zone.

During the Sept. 8 downside reversal, Netflix fell below key support near $96, but, despite the heavy selling pressure, further losses were minimal. Shares began to repair the damage the next day. The following week, the stock re tested the initial September low of $93.55 and rebounded nicely off this key level. Netflix had drifted back down to the lower band of the $101-to-$96 support zone.

Investors should consider new longs in this area while the stock remains in deeply oversold territory. A rebound from a short-term base in this zone could pack quite a punch.

On the downside, a close below the $93 level would indicate a more drawn-out basing process is ahead. If Netflix can hold above September's multi-week lows near $93.50, the current bottoming action will remain intact.

Click here to see the below chart in a new window.

Image placeholder title

Disclosure: This article is commentary by an independent contributor. At the time of publication, the author was long NFLX.