Cloudflare Stock Rises 3.40% to $207.68 Extending 6-Day 9.80% Rally

Cloudflare (NET) shares advanced by 3.40% in the most recent trading session, closing at $207.68 and marking the sixth consecutive day of gains. This rally has propelled the stock upward by 9.80% over the past week, reflecting robust bullish momentum near all-time highs.
Candlestick Theory
Recent candlestick patterns demonstrate bullish consolidation. The current six-day winning streak features predominantly green candles with higher lows, confirming accumulation near the $200 psychological support. Key resistance is evident at $210.98 (July 31 high), while support solidifies around $199–$201, validated by multiple bounces between July 24–29. The absence of long upper wicks suggests limited selling pressure at current levels.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bullish alignment, with shorter averages positioned above longer ones. The 50-day MA ($185) recently crossed above the 200-day MA ($158), signaling robust intermediate-term strength. Current price action holding firmly above all three averages—particularly the 50-day MA—confirms a sustained uptrend. This alignment suggests strong institutional support and reduces near-term downside risk.
MACD & KDJ Indicators
The MACD histogram shows widening bullish momentum, with the MACD line maintaining above its signal line since July 25. Concurrently, the KDJ oscillator presents overbought conditions, with the K-line (89) and D-line (85) above 80. While this KDJ positioning flags short-term exhaustion risk, the MACD’s persistent positive divergence underscores underlying strength. The confluence suggests pullbacks may be shallow and tactical rather than trend-reversing.
Bollinger Bands
Volatility expansion is evident, with the 20-day Bollinger Bands widening as price challenges the upper band ($209). The July 31 close near the upper band, coupled with expanding bandwidth, reflects strong breakout momentum. Historically, such volatility expansions have preceded extended directional moves. The middle band ($195) now acts as dynamic support, aligning with key swing lows.
Volume-Price Relationship
Volume patterns validate the rally’s sustainability. The 6.7 million shares traded on July 31 (up 145% from the prior session) confirm institutional participation in the breakout. Up days consistently show higher volume than down days since late June, with the six-day rally recording a 35% average volume increase versus the preceding week. This volume conviction reduces the likelihood of a bull trap.
Relative Strength Index (RSI)
The 14-day RSI reads 77, entering overbought territory (>70). While this warns of short-term consolidation, the indicator’s upward slope and lack of bearish divergence suggest momentum remains intact. RSI has held above 60 since early July, indicating persistent buying pressure. Traders should monitor for RSI reversals below 70, which may signal a tactical pullback toward $200.
Fibonacci Retracement
Applying Fibonacci to the swing low of $170.81 (June 12) and high of $210.98 (July 31), key retracement levels emerge at $200.81 (23.6%), $195.63 (38.2%), and $190.90 (50%). The 23.6% level aligned with July’s consolidation floor ($199–$201), reinforcing its significance as primary support. A sustained break above $210.98 opens 127.2% extension ($222), while any retracement should find buyers at $200.81.
Confluence and Divergence
Significant confluence exists at $200, where the 23.6% Fibonacci level, July swing lows, and Bollinger mid-band converge. This zone offers robust structural support. Divergence appears only in the KDJ’s overbought reading against volume-supported price highs, indicating isolated exhaustion rather than bearish reversal. MACD/RSI alignment favors upside continuation after brief consolidation.
In summary, Cloudflare exhibits strong bullish momentum supported by volume, moving averages, and breakout volatility. While RSI and KDJ hint at near-term exhaustion, the lack of material bearish signals and Fibonacci/Moving Average confluence suggest any pullback toward $200 offers a high-probability buying opportunity. Traders should monitor the $210.98 resistance for decisive breaks, which could accelerate gains toward $222.