Buy Netflix ahead of earnings tonight

Netflix looks good for a buy in this accumulation pattern ahead of its earnings tonight. Accumulation periods are where price trades sideways as big institutions look to gather up shares whilst aiming not to move price too much before the explosion comes. I think thats what we have been witnessing in Netflix over the past number of weeks.

I'm not an expect in fundamentals, TA is my thing, but I think Netflix is a great buy in the middle of a pandemic while everyone is watching it in winter months. Personally I think the content of Netflix has just got better and better. Subscription fees are incredibly low and there is still room for further big earnings per share from Netflix over the coming years. I wouldn't be surprised to see a big spike up tonight to surpass all time highs.

Stop loss at the low of the flag in case we have some bearish news

Comment:

Great 10% move after the bell. I'm sure that we are very likely to see Netflix break this bull flag over the next few days/ weeks and move up towards an extension target of $700 + this year and next

Trade closed: target reached:

As expected we saw a nice move upwards to break the flag and reach an all time high. That was the signal for me to take profits. I tend to always fake breakouts hence my name, especially as I am mainly a day trader. Longer term holders could try and hold this for the next few years.