There is no doubt that gauging the direction of Netflix's stock has been one of the most challenging tasks for analysts over the last 2 years. The big picture shows the formation of a rising wedge, which is similar to other tech stocks. But price has violated the trendlines so many times that we've had to cast doubt on the validity of the upward trend. Netflix is currently trading below the bottom line of the wedge, while other tech stocks are now pushing above the top lines of their wedges. Is this a bearish sign for nflx? On the plus side, price has formed a large bullish flag. Will this invalidate the bearish picture?
I'll be watching to see if the stock can break to the upside over the coming weeks. If we get a breakout, we'll likely see new highs before the tech bubble pops toward the end of the year. If it fails, it will increase the odds that we will see a breakdown of the bullish flag toward the end of the year (another possibility is a brief but explosive breakout to the upside toward the end of the year, before a very sharp pullback).
PS. If you find my charts and comments useful, be sure to follow me on Twitter where I post more often.
I'll be watching to see if the stock can break to the upside over the coming weeks. If we get a breakout, we'll likely see new highs before the tech bubble pops toward the end of the year. If it fails, it will increase the odds that we will see a breakdown of the bullish flag toward the end of the year (another possibility is a brief but explosive breakout to the upside toward the end of the year, before a very sharp pullback).
PS. If you find my charts and comments useful, be sure to follow me on Twitter where I post more often.
