Cloudflare (NET) is currently navigating the 7th Phase of its 18-Phase Adhishthana Cycle. While the structure remains constructive, investors expecting a breakout may need to exercise patience as the real move may not unfold until March 2026. Here's a detailed look at why.
How Has Cloudflare Aligned With the Adhishthana Principles So Far?
On the weekly chart, Cloudflare has displayed a strong 94% alignment with the Adhishthana Principles, our proprietary cyclical framework that combines quantitative signals with behavioral archetypes. Here are some key highlights from past phases of the current cycle:
Phase 2: The Rally of Buddhi
Cloudflare traded in a tight consolidation for exactly 37 bars, in line with what the framework prescribes. Following that, it broke out and rallied by ~216%, marking a textbook Rally of Buddhi.
Phase 3: Yajya Formation
During Phase 3, Cloudflare formed a classic Yajya Formation, a distinctive Adhishthana hand-arc structure. It rallied slightly, formed a smooth arc, and then corrected sharply, completing the behavioral cycle of this phase precisely.
Phase 6: Discovery of Nirvana
After 24 bars of trading in Phase 6, Cloudflare formed its Level of Nirvana at $85.13. This level now acts as both a valuation barometer and a potential price magnet during corrections throughout the cycle.
What's Unfolding in Cloudflare’s 7th Phase?
Phase 7 brought the expected “Fall of Artha and Artharthi”, a behavioral correction designed to flush out speculative hands and reset the valuation. Cloudflare dropped nearly 48% shortly after entering the phase, accompanied by exactly seven red bars, which is highly consistent with Adhishthana principles.
Interestingly, the correction found support just above the Nirvana level at $85.13. Since then, the stock has rebounded strongly, nearly reclaiming the Phase 7 entry high around $177.37. However, a decisive breakout above this level may remain elusive for now.
Why Cloudflare’s Breakout Might Be Delayed
While momentum has returned, Cloudflare remains in Phase 7, which is not typically when major breakouts occur. According to Adhishthana Principles, the supreme move is expected during Phase 9, set to begin on 2 March 2026.
Until then, the stock may continue to form what we call the Cakra, or “Arc”, a bullish rising channel with a curve. The true breakout is more likely to occur after the completion of this structure, when Phase 9 begins.
Investor Takeaway
Cloudflare is building a constructive base within its Phase 7 structure, and its adherence to Adhishthana Cyclical Principles has been striking. For long-term investors:
- Accumulation near or just above the Nirvana level ($85.13) could be prudent for those seeking deep-cycle opportunities.
- Chasing strength near current highs may not be optimal, as a decisive breakout is not expected before Phase 9 begins in March 2026.
- Watch the Cakra closely; if the bullish arc remains intact, the setup continues to improve. However, if the Cakra breaks to the downside, it could attract significant selling pressure.
The stock remains a buy-on-dip candidate, with a stronger case for a breakout emerging in its Phase 9.
