Streaming-video giant Netflix has been dead in the water since early July. But now some of its chart features could be getting interesting.
First, NFLX’s range of motion has tightened lately as the rest of the market’s expanded. We can see that in its bullish inside week (beginning November 16). Two small candles have followed as prices inched higher. Bollinger Bandwidth is also back to the narrowest end of its normal range (on the daily chart).
Second, MACD has started rising. This also signaled gains at previous times like mid-June and early October.
Third, NFLX is challenging its 50-day simple moving average (SMA). The last couple of times it tried to break this SMA (October 29 and November 6), it quickly backed down. But this time it’s pushed for four straight sessions without failing.
Fourth, bearish candlesticks on November 9 and November 23 had no downside follow-through. Instead, buyers stepped in to defend incrementally higher lows on the stock.
Finally, the fundamental story could shift back in NFLX’s favor if coronavirus cases continue to increase into the winter.
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First, NFLX’s range of motion has tightened lately as the rest of the market’s expanded. We can see that in its bullish inside week (beginning November 16). Two small candles have followed as prices inched higher. Bollinger Bandwidth is also back to the narrowest end of its normal range (on the daily chart).
Second, MACD has started rising. This also signaled gains at previous times like mid-June and early October.
Third, NFLX is challenging its 50-day simple moving average (SMA). The last couple of times it tried to break this SMA (October 29 and November 6), it quickly backed down. But this time it’s pushed for four straight sessions without failing.
Fourth, bearish candlesticks on November 9 and November 23 had no downside follow-through. Instead, buyers stepped in to defend incrementally higher lows on the stock.
Finally, the fundamental story could shift back in NFLX’s favor if coronavirus cases continue to increase into the winter.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
