Cloudflare Rises 3.46% to $224.56 as Technicals Signal Renewed Bullish Momentum

Cloudflare (NET) concluded the latest session at $224.56, posting a 3.46% gain. This marks its second consecutive positive day, with a total two-day advance of 4.65%, suggesting renewed bullish sentiment overcoming recent consolidation pressures.
Candlestick Theory
Recent price action exhibits significant candlestick patterns. The double-bottom formation near the $212-$215 zone on 2025-10-01 and 2025-09-30 established a clear support level. Subsequently, a bullish Piercing Line pattern on 2025-10-02 (where the body closed well above the midpoint of the prior down-day's body) reinforced upward momentum. Resistance is evident near the September peak of $230.10 (2025-09-22), while a critical higher timeframe resistance zone exists around $245-$250 (February/March 2025 highs). Support now holds firm at $212-$215 and strengthens significantly at the 200-day moving average near $170.
Moving Average Theory
Moving averages signal a robust, healthy uptrend. The current price ($224.56) trades comfortably above its 50-day ($212 approx), 100-day ($190 approx), and 200-day ($170 approx) moving averages. Crucially, the 50-day SMA consistently remains above the 100-day SMA since June 2025, and the 50-day recently crossed back above the 200-day SMA (a Golden Cross) in late May 2025. This sequence confirms a strengthening long-term bullish trend. While short-term consolidation is possible, the MA alignment and the price holding above all key averages suggest the primary trend remains upward.
MACD & KDJ Indicators
The MACD indicator currently shows a positive histogram, confirming the recent upward price movement after a period of contraction. However, the histogram slope appears to be stabilizing, suggesting momentum may not be accelerating aggressively yet. The KDJ indicator (particularly the %K and %D lines) recently exited the oversold region (<30) and has risen sharply, approaching the overbought territory (>80). This swift ascent suggests strong near-term upward momentum but warrants caution for potential short-term exhaustion if it persists deeply into overbought. No significant divergence currently exists between KDJ and price.
Bollinger Bands
Bollinger Bands reflect moderate volatility following a period of contraction. Price currently trades near the upper band (approx $227-$230), indicating bullish pressure. A sustained break above the upper band could signal an aggressive breakout, while a rejection might trigger a pullback towards the middle band (often the 20-SMA, approx $214-215) acting as dynamic support. The recent period of contraction before the price move suggests the bands could expand further if momentum continues, validating the move's strength.
Volume-Price Relationship
Volume analysis validates the price recovery. The up-day on 2025-10-02 recorded 2.2 million shares traded – notably higher volume than the preceding down-day on 2025-09-30 (1.86M), supporting the bullish breakout. Earlier significant volume surges coincided with major price moves: strong buying volume during the February breakout above $170 and again during the June rally, and high selling volume during the July decline below $195. While current volume isn't at extreme levels seen during those events, the increased volume on the recent up-days lends credibility to the sustainability of this recovery phase.
Relative Strength Index (RSI)
The 14-day RSI is calculated at approximately 62. This places it comfortably within the neutral zone (30-70), indicating the stock is neither overbought nor oversold. The trajectory is upward from the mid-40s a week prior, aligning with the price gains. Importantly, the absence of an overbought signal (RSI >70) reduces the immediate risk of a sharp pullback solely based on momentum exhaustion. The RSI confirms the trend strength without flashing extreme warning signs.
Fibonacci Retracement
Applying Fibonacci retracement to the most significant recent swing (Low: $170.81 on 2025-06-12; High: $230.10 on 2025-09-22) provides key levels:
23.6% retracement: ~$213.30
38.2% retracement: ~$208.20
50% retracement: ~$200.45
61.8% retracement: ~$192.70
The recent price successfully found support near the 38.2% level ($208-210) before rebounding. The $213.30 level now acts as significant support. The key resistance to overcome remains the 0% level at the prior high of $230.10. A decisive break above this high targets Fibonacci extension levels (e.g., 127.2% ~$248, 161.8% ~$271).
Conclusion & Confluence
Technical analysis suggests Cloudflare is exhibiting a strengthening bullish bias within its established primary uptrend. Key confluence exists at the $212-$215 zone, where recent price found support (Candlestick theory), coinciding with the rising 50-day SMA (~$212) and the critical 23.6% Fibonacci retracement level (~$213.30). Trading volume validates the recent up-move, and the RSI avoids overbought warnings. While the KDJ entering overbought territory and price testing the upper Bollinger Band suggest potential for near-term consolidation or a minor pullback to the $214-$217 support zone (20-SMA / short-term Fib), the confluence of positive signals from moving averages, Fibonacci support, volume, and RSI outweighs these short-term cautions. The path of least resistance remains upward towards the next significant resistance at the September high of $230.10. A sustained break above this level opens the path towards the $245-$250 area.