Netflix was already one of the market’s leading New Economy stocks before coronavirus, and the pandemic has simply raised its status as a recession-proof growth name.
Now a few things could be lining up in its favor again. First, a rebound in coronavirus cases revives the odds of more social distancing and binge watching. Second, NFLX earnings are scheduled for July 16 after the closing bell. Given the favorable demand environment, sentiment may grow more positive into results.
And, most importantly: some patterns on the chart.
NFLX formed an ascending triangle along its 50-day simple moving average (SMA) between late-May and mid-June. It snuck out of that pattern last week, even as the S&P 500 slid lower. That kind of relative strength is also a potentially bullish sign.
NFLX then dipped back lower on Friday and Monday as the
META
boycott dragged big
NDX
stocks lower. That caused one final test of the 50-day SMA, and today NFLX is bouncing.
Another higher low above the old peaks: The trend still looks intact.
Now a few things could be lining up in its favor again. First, a rebound in coronavirus cases revives the odds of more social distancing and binge watching. Second, NFLX earnings are scheduled for July 16 after the closing bell. Given the favorable demand environment, sentiment may grow more positive into results.
And, most importantly: some patterns on the chart.
NFLX formed an ascending triangle along its 50-day simple moving average (SMA) between late-May and mid-June. It snuck out of that pattern last week, even as the S&P 500 slid lower. That kind of relative strength is also a potentially bullish sign.
NFLX then dipped back lower on Friday and Monday as the
META
boycott dragged big
NDX
stocks lower. That caused one final test of the 50-day SMA, and today NFLX is bouncing. Another higher low above the old peaks: The trend still looks intact.
