GreenfieldAnalysis

A new high above $541.39 is possible for Netflix Inc NFLX

Long
NASDAQ:NFLX   Netflix, Inc
A new high above $541.39 is possible for Netflix Inc NFLX


Business Overview
Netflix Inc with symbol NFLX operates a subscription streaming entertainment service.

Upcoming Earnings Report
January 19, 2021, for the period ending December 2020

Chart Reading
Netflix Inc with symbol NFLX has been trading in a narrow range since Jul 10, 2020, between the low price of $468.29 and a high price of $541.39. Recently, the price has been advancing slowly on the 8 hours chart. Currently, the stock price is $540.73 as of market closed on December 31, 2020.

The price pattern has been ascending slowly almost unnoticeable. Volume recently has been in the average range of around 5,008,303 according to Yahoo Finance as of market close on December 31, 2020. The current average volume is much lower compared to the initial average volume at the beginning of the year 2020.

Macd is a trend following indicator and has been trending higher and remained above the signal line. In addition, the Stochastic indicator is an oscillator indicator and has been above the 53.48 level. The Stochastic indicator has been retesting the 80 levels since the beginning of December 2020. That usually means the security is overbought, but in this case, I think this stock is going to break out soon to a new high and this indicator will stay in the range of 80.

Market Opinion

I am 70% bullish and 30% bearish . I think the symbol NFLX Netflix potentially can break above the current high price of $541.39 to a new high soon. However, the price may retest the low price range of around $468.29 before making a new high. If the stock cannot maintain the price of $468.29, then the price may be hit a possible low of $375.61.

Some thoughts on Portfolio Management Strategy & Risk Management
For long traders waiting for an opportunity to enter this stock, it is expensive to enter at the current market price of $541.39. Instead, a better entry price is around $468.29 if NFLX Netflix truly bottoms around that price. Make sure there is a true bottom signal before entering this stock if you are a long trader waiting for an opportunity to enter. Current long traders holding this security at around a price of $541.39 should be careful of a potential pullback to $468.29.

Thank you for reading!

Greenfield




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Disclosure: Chart interpreted by Greenfield. Just a market opinion by Greenfield Analysis LLC for educational purposes only. This is not a recommendation. Greenfield Analysis LLC has no investment in any of the securities mentioned in the article, and no plan to initiate a trade in any of the securities mentioned. Greenfield does not receive any compensation for this writing. Investment involves substantial risk. You should consider carefully before making an investment. Investment at your own risk.




Trade closed: target reached