Cloudflare Stock Rises 3.99% to $213.42 Amid Bullish Technical Signals

Cloudflare (NET) concluded the most recent trading session with a 3.99% gain, marking its third consecutive daily advance and bringing its three-day total return to 8.95%. This upward momentum positions the stock at $213.42, warranting a comprehensive technical assessment of its trajectory using multiple methodologies.
Candlestick Theory
Recent price action reveals a short-term bullish pattern, with three consecutive white candlesticks (August 26–28) demonstrating consistent higher highs and higher lows. Key resistance is evident at the $215.65 level (August 28 high), while support emerges near $205.80 (August 28 low). A critical psychological barrier exists around the $215–$220 zone, which previously capped advances in early August. Sustained closes above $215.65 would signal breakout confirmation, whereas failure to hold $205.80 may trigger near-term profit-taking.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages all slope upward, confirming a long-term bullish trend structure. Notably, the 50-day MA ($191.20) recently crossed above the 100-day MA ($184.50) in late July, reinforcing intermediate-term strength. The current price trades well above all three averages, with the 50-day acting as dynamic support during August pullbacks. A bullish hierarchy persists (price > 50-day > 100-day > 200-day), though the widening gap between price and the 200-day MA ($160.30) suggests potential for consolidation.
MACD & KDJ Indicators
The MACD (12,26,9) histogram shows strengthening positive momentum, with the signal line crossing into bullish territory on August 27. Concurrently, the KDJ oscillator registers an overbought reading (K: 82, D: 75, J: 96), reflecting the sharp three-day ascent. While this suggests near-term exhaustion risk, the MACD’s lack of divergence indicates underlying trend strength. Traders should monitor for KDJ bearish crossovers as early profit-taking signals against the prevailing uptrend.
Bollinger Bands
Price is testing the upper Bollinger Band ($214.80), following a period of band contraction in late August. This expansion signals increasing volatility. Historical breaches of the upper band (e.g., early August) resulted in short-term mean reversion, suggesting the current proximity to the upper band may precede consolidation. A decisive close above $215 would indicate breakout strength, while reversal below $209 (mid-band) could signal retracement toward the lower band ($198.50).
Volume-Price Relationship
Volume surged 12% during the three-day rally, confirming accumulation at higher prices. Notably, the August 28 advance occurred on above-average volume (2.73M shares vs. 30-day avg: 2.45M), validating bullish conviction. This contrasts with the distribution observed on August 7 and 20, where high-volume declines foreshadowed corrections. Sustained volume above the 2.5M-share threshold would reinforce the uptrend’s durability.
Relative Strength Index (RSI)
The 14-day RSI reads 70.5, entering overbought territory. Historically, similar readings in early August and late July preceded 5–7% pullbacks. However, RSI trends have maintained higher lows since June, aligning with the primary uptrend. While overbought conditions suggest consolidation is probable, they seldom indicate immediate reversals in strongly trending assets. A retreat toward RSI 55–60 could offer healthier entry points.
Fibonacci Retracement
Applying Fibonacci levels to the major swing low of $120.78 (April 30) and the recent peak of $215.65 (August 28) reveals critical retracement zones. The 23.6% level ($198.50) provided support during August 22–26, while the 38.2% level ($189.20) aligns with the July consolidation base. Confluence exists at the 61.8% retracement ($160.00), corresponding to the 200-day moving average. Pullbacks should ideally hold above $198.50 to preserve bullish structure.
Confluence and Divergence Observations
Confluence appears at $198–$200, where Fibonacci support, the 50-day moving average, and Bollinger mid-band converge, creating a high-probability bounce zone. Conversely, the KDJ’s overbought status diverges from MACD’s continued momentum, warranting caution against aggressive long entries at current levels. Volume confirmation during upside breaks and the absence of bearish candlestick patterns suggest near-term strength may extend toward the $219–$225 resistance zone if $215.65 is convincingly breached.