Can NFLX rebound from the down turn after earnings?
NFLX started a good trend up about June 25 and then pulled back in the day after the
earnings report. Although the earnings beat expectations, price continued to drop in
a VWAP breakdown shown here on a 2 hr chart. Over the 2 days that followed, price
has continued down at a slower rate and candle ranges are diminished. Importantly,
the zero=lag MACD shows a line cross under the histogram which has changed from
red /negative to green/positive. The lines have inflected upward. I see this as demonstrative
of bullish divergence and predictive of a reversal.
Overall, I see NFLX rebounding with a potential 15% upside. My target is 480 in consideration
of the swing high on July 18th with a stop loss of 415 the swing low of late June.
earnings report. Although the earnings beat expectations, price continued to drop in
a VWAP breakdown shown here on a 2 hr chart. Over the 2 days that followed, price
has continued down at a slower rate and candle ranges are diminished. Importantly,
the zero=lag MACD shows a line cross under the histogram which has changed from
red /negative to green/positive. The lines have inflected upward. I see this as demonstrative
of bullish divergence and predictive of a reversal.
Overall, I see NFLX rebounding with a potential 15% upside. My target is 480 in consideration
of the swing high on July 18th with a stop loss of 415 the swing low of late June.
level of 26.5 and so has given a fairly reliable reversal signal.