NEW YORK ( TheStreet) -- Shares of Netflix (NFLX) are showing early signs of exhaustion. So far this week the stock remains near last week's all-time highs, but momentum appears to be easing.
Considering the extent of the huge ramp off the last month's low, without much of a pullback, a rest is well-deserved.
At last week's peak near $630, NFLX had gained over $200 in just over six weeks. This 50% move began with a short-term base near the stock's 200-day moving average before getting a major jolt on April 16.
The stock ramped 16% that day on its heaviest trade since early 2013. This earnings-inspired breakout drove shares well past its 2014/initial-2015 highs. Netflix consolidated in late April before moving to new highs again earlier this month.
On May 15, news of a China deal sparked another high-volume upside gap. The stock floated higher in the aftermath but now appears to have lost all of this most recent momentum.
A healthy pullback now seems likely before shares are in a position to make a move well into new high ground.
Here's what The Street's Jim Cramer had to say about Netflix:
"As a long time supporter of this stock, I recognize that sometimes it just gets exhausted. This seems to be one of those times, as there is a news flow vacuum and it has run a great deal on China 'love.' I think it's resting, no more than that."
On the weekly charts the MACD is marking an all-time high far exceeding the level reached in early 2014. At that time, NFLX was finishing off a bull leg that carried the stock more than 40% higher during that year's first quarter.