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Netflix (NFLX) testing a pattern resistance; Alibaba (BABA) not interested

Netflix has been trading sideways for the past year. In the daily chart, we can see that after a rally from 80 up to about 112, price has fallen into a consolidation pattern. 

NFLX Daily Chart 8/8

(click to enlarge)

Bearish bias:
- It should be noted that even though the market was consolidating for a year or so, there is some bearish bias.
- The late 2015, early 2016 dip from 133 to 80 set the bearish tone. 
- Price failing to climb back above 112 also suggested bearish bias. 
- Now, price is holding under the 200-, 100-, and 50-day simple moving averages (SMAs). 
- Price is starting to hold under a psychological level of 100. 
- Since June, the RSI has tagged 30 and has held under 60.

Bullish attempt:
- The noted bearish bias is in the medium-term.
- In the short-term, since mid-July, NFLX has been bullish.
- It is now testing a consolidation pattern resistance.
- But , a break above won't tell us that much other than a short-term bullish outlook.
- The targets will be T1: 100, T2: 104, T3: 112

Bearish scenario:
- Let's see how the market treats this resistance here around 97.00. 
- A hold below 97.00 will reflect failure of the bull run. 
- If price falls back below 94.50, I would say bears are back in control.
- Then, a return below 92 will confirm a bearish continuation scenario for me, which has the 84.00 handle, and then the 80.00 low in sight. 

Here is some fundamental backdrop from

NEW YORK (TheStreet) -- Shares of Netflix (NFLX) were falling before the market open on Monday after Alibaba Group (BABA) announced that it was not making a bid for Netflix, Reuters reports.

Speculation grew on Friday that the Chinese mobile commerce company was seeking an investment in Netflix, based in Los Gatos, CA.

An Alibaba spokesperson recently debunked those rumors, telling Reuters the company was not interested in placing a bid.

Recode Managing Editor Ed Lee said on CNBC's "Power Lunch" on Friday that a deal between the two was "very unlikely," citing issues like regulatory problems and media censorship in China.

In Netflix's earnings release in July, the company said it was encountering a tough regulatory environment in China and that it "has become more challenging" to gain traction there. However, Netflix confirmed that it is still exploring options to expand in the country. (Full article at