Netflix - Worth Watching. The Shows & The Stock!

Of all the streaming services we have, Netflix is deemed uncancellable by my wife and daughter. As well as watching the shows it is also worth watching the stock.

On this weekly chart, we can see Netflix has been pummeled and successfully completed the head and shoulders top as indicated in the chart. ( I flagged this in October)

Also in the chart, you can see I flagged a negative divergence in ROC and CMF dating back to the start of the head and shoulders in April 2018.

In technical analysis, the theory goes that the fall after the head and shoulders top will be as deep as the shoulders are wide. That remains to be seen with Netflix.

Interestingly what we do see is the small positive divergence occurring after yesterdays big spike. This indicates a potential early entry point.

It is early days yet, so enter at your own risk, but it could be a good sign.

As we everything, if the market continues strongly bearish, then NFLX could be dragged down with it.

If you want to be able to perform your own technical analysis to this level of detail, see the links in my signature for stock market trader training.

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Good luck