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Is Netflix at Risk of a Breakdown?

Short
NASDAQ:NFLX   Netflix, Inc
Netflix was obviously a big beneficiary of last year’s pandemic. It was one of the first to break out (mid-April) and one of the first to peak (early July). Now it may be at risk of breaking down and having a deeper pullback.

The first and most important thing on this chart is the bearish gap after the last earnings report. Profit and revenue beat as management raised prices. That kind of tinkering might work for a consumer-staple company or an industrial, but a growth stock needs to grow. And that’s where NFLX came up short, with subscribers up barely half the expected amount.

NFLX has not only failed to bounce after that gap. It’s also consolidated below its 200-day simple moving average ( SMA ), not once closing above it.

The current area also corresponds to an upward-sloping trendline that began in late June. Additionally, it’s near the “nice, round number” of $500.

Amazon.com and Apple are staggering as well, despite good results. Meanwhile, energy, materials, financials and industrials are pushing higher. It appears money is rotating away from Growth / FANG once again now that earnings have passed. With the economy reopening, that could be another risk for NFLX .

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Comments

NETFLIX is just another platform (NOTHING SPECIAL) in the days of FIRESTICKS!
+2 Reply
This is something that I also felt like would happen. With the massive amounts of streaming programs that came about Amazon Prime ,Disney +, and the list goes on from "new to old." Netflix doesn't have enough content to compete and it will go into a financial downtrend unless it merges with another platform. '

Great info whoever posted this.
+2 Reply
Thanks for sharing this chart and explanation @TradeStation! We've featured this in Editors' Picks
+2 Reply
it's roku and chill post-c19
Reply
thankyou it looks to be bears moveing in
Reply
great work
Reply
by the price action sight it will be bearish
Reply
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