NFLX, Netflix, is a little bit different since the price is already above the buy point by the time this will be published. The better buy point would be 510.92 because there was a nice 8% consolidation around that area. You can't change the price now so we can only look for future buy points.
After the run up of 11%, it took a few days to digest the gains and now is going up again. So why am I saying a buy at $549.14? It is because there is a resistance at $550 shown by the large price move on 08/26. Then the day after there was a gap down at the open. This means someone out there is selling when the price hits $550. This is a sign of resistance. Now the next less risky buy point is $ 575.37. Why because if NFLX is bought at $575.37 with a stop loss of 7% the the loss would be only about 3%, which is lovely.
NFLX fundamentals are below, which is just lovely for an ~250b market cap company.
Yearly EPS 2018: 2.68 2019: 4.13 est 2020: 6.21 est 2021: 8.81
Just re-analyzed my analysis and I don't know why I put a price target of $546.14 besides out of massive exuberance. The buy point should have been either $510.92 or $575.37 based on the two green lines that were drawn.
Awesome, this thing can go over 700 quickly. What say?
HaleyZhao
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@bhartha2007, mainly history, most stocks after a successful base go up 20-25%. NFLX hasn’t successfully broken out yet so time will tell.
fernandoescobar
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@bhartha2007, you’re crazy if you think Netflix will continue up with millions of cancellations for their pro-pedo programming. If anything, I would be shorting the crap out of this stock...look at 250-300 range to settle at.
HaleyZhao
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@fernandoescobar, agree with you I would be crazy to still think that NFLX would be roaring upwards to over $700. About two weeks ago I was still bullish but not anymore. The next resistance I see is around $466 where there seems to be support during this basing period. Then if it really breaks $466 with with negative price action on the indexes then $400 would be my next price target where prior lows and and the 40WMA are coinciding. Thank you for your comment for the update.
fernandoescobar
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@HaleyZhao, It may a great shorting opp since the DOJ may be opening an investigation into the promotion of child pornography material. Time will tell. Best of luck!