Cloudflare Stock Rises 3.19% to Near $200 Mark on 5-Day 8.80% Rally

Cloudflare (NET) shares rose 3.19% in the most recent session, marking the fifth consecutive day of gains and bringing the five-day rally to 8.80%. This bullish momentum positions the stock at $197.35, approaching psychological resistance at $200 and setting a new yearly high. A comprehensive technical assessment follows.
Candlestick Theory
Cloudflare exhibits a robust five-white-soldier pattern formed by consecutive higher closes since July 14, signaling sustained buying pressure. The absence of upper shadows on the last three candles suggests minimal intraday profit-taking. Key support emerges at $178.50 (July 14 low), validated by the July 10 hammer reversal candle near $179.55. Immediate resistance is observed at $197.35–$198, a prior reaction high in early July. A decisive close above $200 could trigger further upside, while failure may invite consolidation near the 50% Fibonacci retracement level.
Moving Average Theory
Cloudflare’s trend structure remains decisively bullish, with the 50-day MA ($185.20) maintaining alignment above both the 100-day ($175.80) and 200-day MA ($140.60), confirming a sustained uptrend. The current price trades 6.5% above the 50-day MA, signaling strong short-term momentum. Golden crosses persist across all key averages, with the 50/200-day spread widening to 31.8% – a multi-month high. This configuration suggests institutional accumulation remains intact, though a mean-reversion pullback toward $190–$192 may emerge if volatility expands.
MACD & KDJ Indicators
The MACD (0.88) maintains a bullish histogram expansion above its signal line, though proximity to yearly highs indicates overextended conditions. The KDJ oscillator shows K-line (89) and D-line (85) at overbought extremes, with J-line (97) exhibiting negative divergence against price. While MACD supports continuation, the KDJ’s stretched positioning suggests interim exhaustion. Confluence appears at $190–$192, where KDJ’s cyclical support aligns with the 38.2% Fibonacci level. A bearish MACD crossover would validate caution.
Bollinger Bands
Volatility compression resolved bullishly, with price breaching the upper Bollinger Band ($194.20) during the five-day rally. Band width contraction to 2.8% (near yearly lows) preceded this expansion, indicating latent energy. Current trading at 105% band width highlights short-term overextension. The middle band ($188) aligns with rising volume-weighted support at $187–$189. Band expansion continuation would target $202–$205, while reversion toward the midline appears probable near term.
Volume-Price Relationship
Volume surged 17% during the rally, peaking at 4.21 million shares on the latest session – the highest since June 27. This distribution validates breakout sustainability and exceeds the 20-day average volume by 34%. Notably, accumulation days (price up/volume up) dominate recent sessions, contrasting with the July 10 sell-off (3.86 million shares on -5.98%). Volume confirmation strengthens the $197–$200 resistance test, though climactic activity raises alert for distribution.
Relative Strength Index (RSI)
The 14-day RSI reads 74, crossing above the overbought threshold after hovering near 70 since early July. Current divergence is absent, as RSI progression matches price ascent. Historical observations show RSI >75 preceded pullbacks in March and June 2025. While confirming near-term bullishness, the elevated reading suggests consolidation risk near $200. RSI’s failure to breach 80 during prior rallies indicates this oscillator may serve best as a continuation signal until proven otherwise.
Fibonacci Retracement
Applying Fibonacci to the swing low ($178.50 on July 14) and high ($197.35), critical support emerges at the 38.2% ($190.20) and 50% ($187.90) levels, confluent with the 20-day moving average and Bollinger midline. The 61.8% retracement at $185.40 aligns with heavy-volume support from July 11-15. Upside extensions identify $202.50 (127.2%) and $207.80 (161.8%) as logical technical targets should $200 be breached decisively.
Confluence and Divergence Observations
Confluence is pronounced at $190–$192, where Fibonacci, volume support, and the Bollinger midline converge, creating a high-probability reversal zone for pullbacks. Divergence emerges between MACD/price and KDJ overextension, with RSI nearing historically resistive territory. Volume validation during the rally offsets these warnings for now. The primary risk remains profit-taking near $200, but structural supports above $185 suggest any consolidation should be shallow within the prevailing uptrend.