Gonna be watching Netflix very closely over the next week to see what direction it wants to go. Since the start of 2018 this thing has over doubled and we look pretty over extended. This latest run from the lows of 311 could easily be a bull trap. I'm expecting a pullback in the Indices to start this week, or possibly next week. With that in mind, Netflix could...
Back in June I said to stay away from Netflix, today i am saying the same thing.
Netflix is under a major correction. Do not get distracted by an up 5% here and there- this thing is still correcting and has a long way down.
Next down target is $300
MACD is still coming down Heavily
RSI is still coming down.
This is a huge correction
Whenever an asset grows at an exponential rate, that is a red flag that a major correction is imminent. Netflix has seen unbelievable growth (along with the other FAANG's) in the past year, and signs are now showing that correction time has begun. Last week, Netflix reported earnings and user expansion slightly lower than the sky high expectations 'analysts' had...
Netflix have stated some very interesting news and forecasts for the rest of this year, based on the fundamentals and technical analysis we can only see this stock going 1 way in the future.
We clearly can see the 4 waves in the chart and the reaction at the top of wave 4 so we can presume the price will keep falling OR it will make a rebunds and to make a bearish patern
This is not a financial advice but personally I will think twice before buying this stock
With a reasonable ER and chart looking primed, I am continuing to build my long position in this area. Ive kept plenty of dry powder for a drop to the 29 region and will load heavy there. A stop below the lowest order block provides an excellent R:R for buying here. Maybe I'm being naive but seeing instituitons downgrade IQ seems like a contrarian indicator to me...
Looking at this monthly chart Netflix started to break above it's upper channel trend line. Typically when this happens it is a sign that there is some parabolic momentum and there is a good chance for a reversion back to the upper trend line. That measured move would be around the $288 zone. I would expect that area to be defended.
TRADE IDEA (conservative)
BUY at the break of $383.00
STOP at $363.00
TARGET $420
Risk to reward 1:2
FUNDAMENTAL PERFORMANCE FOR NFLX
Current Earnings
EPS Due Date 10/15/2018
EPS Rating 97
EPS % Chg (Last Qtr) 467%
Last 3 Qtrs Avg EPS Growth 233%
# Qtrs of EPS Acceleration 1
EPS Est % Chg (Current Qtr) 134%
Estimate Revisions ...
Whether or not a reversal is in the making is the big question.
On Friday, markets were significantly positive until Trump renewed threats on 500B worth of tariffs on China, which resulted in a slight close lower on QQQ. With the president going after Iran etc there is significant Geo-political risk. Apparently earnings are the week focus, so in the case of...
Interesting outlier for FANGs
- Price is flirting with a 4/5 Month Trendline (pink line)
- Price has already broken a 3 Month Trendline (blue line)
-Ceteris paribus, not much support if it drops, Volume Profile suggests price could move to 318
- if you are Longing FANGs, shorting Netflix might be a useful hedge? given the the recent price action? Food for thought...
