📰 Cloudflare (NET) — Technical Overview & Breakout Strategy
Ticker: NET | Sector: Cybersecurity / Edge Computing
Date: July 26, 2025
Current Price: ~$198
⚠️ Context: Past Red‑Candle Sell-Offs
NET has experienced sharp downward reversals often signaled by large bearish engulfing candles, especially during pullbacks from the $200–$205 range.
These sell-offs typically occurred with elevated volume, triggering destruction of short-term support and dragging price toward $185–$190, followed by consolidation and eventual bounce.
Those breakdowns often led to retests of the $190 support zone, with range bottoming and short-covering rallying price back toward $200+.
🧰 Current Technical Set-Up
Price is consolidating just below its 52-week high near $200.8, forming a tight range between $190 support and $200 resistance.
Moving averages:
50-day MA ~$193, 200-day MA ~$188 — all indicating bullish trend alignment.
Investing.com
Technical ratings classify NET as a Strong Buy on both daily and weekly timeframes.
🔍 Support & Resistance Levels
Support Zones:
Primary: $190–$192 (recent consolidation base)
Secondary: $185 (recovery low after last drop)
Resistance Zones:
Immediate: $200–$202 — near all-time highs
Major Breakout Target: Above $205–$207 opens upside extension
✅ Bullish Breakout Scenario
Trigger: Clear close above $202, especially with strong volume
Targets:
Short-term: $210 → $215
Extended: $220+ if breakout sustains and earnings beat arrives
Supportive Thesis: Rising demand for cyber‑security, expanding AI tools (e.g. pay-per-crawl, bot protection), and expansion into media and content creator segments. Cloudflare maintains strong institutional accumulation metrics.
❌ Bearish Breakdown Scenario
Trigger: Fall below $190–$192 zone
Targets:
First: $185
If momentum continues: $180 → $175
Risk Drivers: Overbought pullback after extended run-up, profit-taking, or broader tech selloff. Large red candles in the past preceded rapid downward moves.
📊 Summary Table
Outlook Trigger Level Target Zones Technical Notes
Short-Term Bull Above $202 $210 → $215 Breakout from high consolidation zone
Short-Term Bear Below $190 $185 → $180 Overbought exhaustion, volume decline
Long-Term Bull Sustained > $205 $220 → $230 Continued AI/protection tailwinds
Long-Term Bear Clear break under $190 $180 → $175 Broad rotation, failed breakout
🧠 Viewpoint Summary
Cloudflare is currently consolidating just below all-time highs after a strong year-to-date rally. The stock remains technically strong, but recently stretched indicators suggest potential for near-term pullbacks. A breakout above $202+ could unlock further upside, while a drop below $190 might trigger a retest toward lower support zones.
Given Cloudflare’s expanded role in AI infrastructure and cybersecurity, its trend remains attractive—but price action will be key to confirm direction.
Ticker: NET | Sector: Cybersecurity / Edge Computing
Date: July 26, 2025
Current Price: ~$198
⚠️ Context: Past Red‑Candle Sell-Offs
NET has experienced sharp downward reversals often signaled by large bearish engulfing candles, especially during pullbacks from the $200–$205 range.
These sell-offs typically occurred with elevated volume, triggering destruction of short-term support and dragging price toward $185–$190, followed by consolidation and eventual bounce.
Those breakdowns often led to retests of the $190 support zone, with range bottoming and short-covering rallying price back toward $200+.
🧰 Current Technical Set-Up
Price is consolidating just below its 52-week high near $200.8, forming a tight range between $190 support and $200 resistance.
Moving averages:
50-day MA ~$193, 200-day MA ~$188 — all indicating bullish trend alignment.
Investing.com
Technical ratings classify NET as a Strong Buy on both daily and weekly timeframes.
🔍 Support & Resistance Levels
Support Zones:
Primary: $190–$192 (recent consolidation base)
Secondary: $185 (recovery low after last drop)
Resistance Zones:
Immediate: $200–$202 — near all-time highs
Major Breakout Target: Above $205–$207 opens upside extension
✅ Bullish Breakout Scenario
Trigger: Clear close above $202, especially with strong volume
Targets:
Short-term: $210 → $215
Extended: $220+ if breakout sustains and earnings beat arrives
Supportive Thesis: Rising demand for cyber‑security, expanding AI tools (e.g. pay-per-crawl, bot protection), and expansion into media and content creator segments. Cloudflare maintains strong institutional accumulation metrics.
❌ Bearish Breakdown Scenario
Trigger: Fall below $190–$192 zone
Targets:
First: $185
If momentum continues: $180 → $175
Risk Drivers: Overbought pullback after extended run-up, profit-taking, or broader tech selloff. Large red candles in the past preceded rapid downward moves.
📊 Summary Table
Outlook Trigger Level Target Zones Technical Notes
Short-Term Bull Above $202 $210 → $215 Breakout from high consolidation zone
Short-Term Bear Below $190 $185 → $180 Overbought exhaustion, volume decline
Long-Term Bull Sustained > $205 $220 → $230 Continued AI/protection tailwinds
Long-Term Bear Clear break under $190 $180 → $175 Broad rotation, failed breakout
🧠 Viewpoint Summary
Cloudflare is currently consolidating just below all-time highs after a strong year-to-date rally. The stock remains technically strong, but recently stretched indicators suggest potential for near-term pullbacks. A breakout above $202+ could unlock further upside, while a drop below $190 might trigger a retest toward lower support zones.
Given Cloudflare’s expanded role in AI infrastructure and cybersecurity, its trend remains attractive—but price action will be key to confirm direction.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.